Stocks of Daqo New Energy Corp. (DQ) are poised to climb above their peers

Daqo New Energy Corp. (NYSE: DQ) stock fell -2.33% on Friday to $45.67 against a previous-day closing price of $46.76. With 0.56 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.28 million shares. During the session, the Semiconductor Equipment & Materials company that operates in wider Technology sector, reached to the highest price of $47.34 whereas the lowest price it dropped to was $45.66. The 52-week range on DQ shows that it touched its highest point at $77.18 and its lowest point at $32.20 during that stretch. It currently has a 1-year price target of $62.93. Beta for the stock currently stands at 0.54.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DQ was down-trending over the past week, with a drop of -3.49%, but this was up by 13.41% over a month. Three-month performance dropped to -9.97% while six-month performance fell -28.92%. The stock gained 20.76% in the past year, while it has gained 18.29% so far this year. A look at the trailing 12-month EPS for DQ yields 21.23 with Next year EPS estimates of 19.74. For the next quarter, that number is 7.37. This implies an EPS growth rate of 465.90% for this year and -25.80% for next year.

Float and Shares Shorts:

At present, 75.59 million DQ shares are outstanding with a float of 68.16 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.94 million, which was 3.92% higher than short shares on Sep 14, 2022. In addition to Mr. Guangfu Xu as the firm’s Founder & Chairman, Mr. Longgen Zhang serves as its CEO & Director.

Institutional Ownership:

Through their ownership of 58.47% of DQ’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 34.00% of DQ, in contrast to 24.90% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in DQ with 4.38% of the stake, BlackRock Fund Advisors holds 3,286,017 shares worth 3,286,017. A second-largest stockholder of DQ, Templeton Asset Management Ltd., holds 2,857,489 shares, controlling over 3.81% of the firm’s shares. HHLR Advisors Ltd. is the third largest shareholder in DQ, holding 2,101,315 shares or 2.80% stake. With a 2.27% stake in DQ, the Invesco Solar ETF is the largest stakeholder. A total of 1,700,104 shares are owned by the mutual fund manager. The Templeton Emerging Markets Invest, which owns about 1.73% of DQ stock, is the second-largest Mutual Fund holder. It holds 1,293,400 shares valued at 49.94 million. Vanguard Emerging Markets Stock I holds 1.03% of the stake in DQ, owning 771,217 shares worth 29.78 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DQ since 12 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DQ analysts setting a high price target of $102.00 and a low target of $42.40, the average target price over the next 12 months is $62.86. Based on these targets, DQ could surge 123.34% to reach the target high and fall by -7.16% to reach the target low. Reaching the average price target will result in a growth of 37.64% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DQ will report FY 2022 earnings on 02/26/2024. Analysts have provided yearly estimates in a range of $31.20 being high and $25.48 being low. For DQ, this leads to a yearly average estimate of $27.16. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Daqo New Energy Corp. surprised analysts by -$2.90 when it reported $4.18 EPS against a consensus estimate of $7.08. The surprise factor in the prior quarter was -$0.21. Based on analyst estimates, the high estimate for the next quarter is $7.80 and the low estimate is $7.02. The average estimate for the next quarter is thus $7.41.

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