Daqo New Energy (DQ) shares ended the last trading session 6.1% higher at $14.56. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 25.8% loss over the past four weeks.
DQ's shares surged on a broad-based rally, triggered by President Trump’s announcement of a 90-day suspension of reciprocal tariffs for most countries.
This solar panel parts maker is expected to post quarterly loss of $1.02 per share in its upcoming report, which represents a year-over-year change of -525%. Revenues are expected to be $194 million, down 53.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Daqo, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DQ going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Daqo belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, Ashland (ASH), closed the last trading session 11.2% higher at $51.75. Over the past month, ASH has returned -18.8%.
For Ashland
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DAQO New Energy Corp. (DQ): Free Stock Analysis Report Ashland Inc. (ASH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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