Are Basic Materials Stocks Lagging DAQO New Energy (DQ) This Year?

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Daqo New Energy (DQ) been one of those stocks this year? Let’s take a closer look at the stock’s year-to-date performance to find out.

Daqo New Energy is one of 240 individual stocks in the Basic Materials sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Daqo New Energy is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for DQ’s full-year earnings has moved 32.9% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.

According to our latest data, DQ has moved about 69.3% on a year-to-date basis. At the same time, Basic Materials stocks have lost an average of 5%. This shows that Daqo New Energy is outperforming its peers so far this year.

Another stock in the Basic Materials sector, Livent (LTHM), has outperformed the sector so far this year. The stock’s year-to-date return is 25.7%.

In Livent’s case, the consensus EPS estimate for the current year increased 12.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Daqo New Energy is a member of the Chemical – Specialty industry, which includes 35 individual companies and currently sits at #80 in the Zacks Industry Rank. On average, stocks in this group have lost 15.9% this year, meaning that DQ is performing better in terms of year-to-date returns. Livent is also part of the same industry.

Daqo New Energy and Livent could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.

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