DQ Stock Recent News

Daqo New Energy (DQ) is likely to have gained from higher prices, healthy demand for polysilicon and actions to improve efficiency in the first quarter.

The latest trading day saw Daqo New Energy (DQ) settling at $22.29, representing a +0.81% change from its previous close.

We are upgrading DQ to a Buy, despite the declining spot prices, the growing pessimism surrounding Chinese-based ADS, and the (potential) intensified solar tariffs on foreign made solar panels. The stock is still trading way below its book value per share, thanks to the robust balance sheet and the management's consistent share repurchases thus far. DQ remains well capitalized to weather the intermediate-term uncertainties, as the polysilicon prices near cash costs and the global capacity expands over the next few years.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

The Zacks Chemicals Specialty industry is poised to benefit from an uptick in demand across major end-use markets. PPG, DQ, HWKN and AVD are set to gain from self-help actions and demand recovery.

Daqo New Energy holds a majority stake in its subsidiary Xinjiang Daqo, which is listed on the Shanghai Stock Exchange. Daqo is trading at 29.9% of the NAV of the stake in the Chinese subsidiary, which translates into an upside of 235%. There is significant operating leverage in the polysilicon price, potentially adding further upside to the discount to NAV.

The mean of analysts' price targets for Daqo (DQ) points to a 28.5% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Daqo (DQ) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

Daqo New Energy Corp. (DQ) Q4 2023 Earnings Call Transcript