Daqo New Energy Corp. (DQ) Research Recommendations: Here’s What You Should Know

The stock of Daqo New Energy Corp. (NYSE:DQ) decreased by decreased by -$1.04 on Friday to finish at $71.37, down -1.44 percent. The last five days have seen an average of 1,705,420 shares of common stock traded. 13 times new highs were reached in the current year, with a gain of $14.01. The average number of shares traded over the last 20 days was 1,642,410, while the average volume over the last 50 days totaled 1,930,568.

DQ stock appreciated 25.19% since last month. On 09/29/21, the company’s shares reached a one-month low of $51.34. The stock touched a high of $130.33 on 02/10/21, after rallying from a low of $33.33 in 52 weeks. The price of DQ stock has risen by 24.42% or $14.01 this year, reaching a new high 13 times. Still, the stock price is down -45.24% from the 52-week high.

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Valuation Metrics

Daqo New Energy Corp. (DQ) has a trailing price-to-earnings (P/E) ratio of 13.27. This level actually compares favorably with the industry at large, as the PE for the Semiconductor Equipment & Materials industry stands at about 34.77. Further, its PE also compares favorably with the Technology sector’s trailing 12 months PE ratio, which comes in at 38.99 right now. The PE ratio of Daqo New Energy Corp. has varied between 73.45 and 2.832 in the last five years. Beta for the stock is 0.81. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.97, the price-to-book (PB) ratio of 4.80.

For the three months ended June 29, Daqo New Energy Corp.’s quick ratio was 1.00, while its current ratio was 1.10, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.06, and the total debt to equity ratio is 0.18. As far as profitability goes, gross margin for the trailing twelve months is 53.90% percent. Daqo New Energy Corp.’s EBITDA margin for the year ended June 29 was 37.94%, whereas its operating margin stood at 49.80% for the same period. Based on annual data, it had gross profit of $233.99 million and revenue of $675.6 million.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. DQ’s return on assets (ROA) during the last 12 months has been 29.20%. There was a 15.80% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 48.50%. ROE has averaged -0.25 in the past year for the broader industry.

Earnings Surprise

According to Daqo New Energy Corp.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $675.6 million, while revenues rose by 48.2% to $0.0. It was predicted that Daqo New Energy Corp.’s quarterly earnings would be $3.03, but it ended up being $3.29, beating the consensus by -7.90%. EBITDA was $292.42 million for the quarter. At the end of Daqo New Energy Corp.’s most recent quarter ended June 29, its liabilities totaled 573.44 million, while its total debt was $222.33 million.

Technical Picture

Here’s a quick look at Daqo New Energy Corp.’s (DQ) price momentum from a technical perspective. As of 22 October, the RSI 9-day stood at 68.73%, suggesting the stock is Neutral, with a 57.51% historical volatility rate.

The stochastic %K and %D were 88.70% and 92.30% respectively, while the average true range (ATR) was 3.90. Based on the 14-day stochastic reading of 84.37%, the RSI (14) reading is 64.55%. On the 9-day MACD Oscillator, the stock is at 3.67, and the 14-day reading is at 7.56.

Analyst Ratings

Daqo New Energy Corp. (NYSE: DQ) was downgraded by Daiwa Securities to a an Outperform rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned Daqo New Energy Corp. (DQ) an Overweight rating. DQ is a stock that is recommended for selling by 0 brokerage firms, while 3 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 4 rates it overweight and 5 others recommend it as a buy.

What is DQ’s price target for the next 12 months?

The current consensus forecast for the stock is between $52.00 and $181.00, with a median target price of $93.95. In analyzing these forecasts, the average price target given by analysts for Daqo New Energy Corp. (DQ) is $97.34.


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