Don’t Be Fooled By Weakness in Daqo New Energy Corp. [DQ] Stock

Daqo New Energy Corp. [DQ] shares are up more than 353.63% this year and recently decreased -0.03% or -$1.13 to settle at $38.59. DQ has a short ratio of 2.60. This implies that the market is currently less bearish on the outlook for DQ.

On 30, November 2020, Daqo New Energy Announces Long-Term High-Purity Polysilicon Supply Agreement with Trina Solar. According to news published on Yahoo Finance, Daqo New Energy Corp. (NYSE: DQ) (“Daqo New Energy”, the “Company” or “we”), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced that it signed a long-term high-purity polysilicon supply agreement with Trina Solar (SSE:688599) (“Trina”), a global leading solar PV system integrator.

Analyst Birdseye View:

The most recent analyst activity for Daqo New Energy Corp. [NYSE:DQ] stock was on March 10, 2020, when it was Initiated with a Buy rating from Daiwa Securities. Before that, on October 26, 2020, ROTH Capital Recapitulated a Neutral rating and elevated its amount target to $200. On November 14, 2019, JP Morgan Initiated an Overweight rating and boosted its price target on this stock to $50. On August 24, 2018, Credit Suisse Initiated an Outperform rating and increased its price target to $58. On February 26, 2018, Tudor Pickering Downgrade a Hold rating. On November 11, 2015, Morgan Stanley Downgrade an Equal-weight rating. On October 31, 2014, ROTH Capital Resumed a Buy rating and boosted its target amount on this stock to $80. Collins Stewart elevated its amount target by recapitulating a higher weight for this stock.

In the past 52 weeks of trading, this stock has oscillated between a low of $8.32 and a peak of $48.73. Right now, according to Wall Street analyst the average 12-month amount target is $50.99. At the most recent market close, shares of Daqo New Energy Corp. [NYSE:DQ] were valued at $38.59. According to the average price forecast, investors can expect a potential return of 10.15%.

FUNDAMENTAL ANALYSIS

Daqo New Energy Corp. [NYSE:DQ] most recently reported quarterly sales of 126.22 billion, which represented growth of 49.60%. This publicly-traded organization’s revenue is $185,303 per employee, while its income is $14,964 per employee. This company’s Gross Margin is currently 29.20%, its Operating Margin is 21.90%, its Pretax Margin is +10.82, and its Net Margin is +8.08. Continuing to look at profitability, this corporation’s Return on Assets, Equity, Whole Principal & invested Principal is sitting at 2.75, 5.19, 5.02 and 4.11 respectively.

If looking now at the Principal structure of this organization, it shows its whole liability to the whole Principal at 40.23 and the whole liability to whole assets at 31.75. It shows enduring liability to the whole principal at 15.99 and enduring liability to assets at 0.13 while looking for an extended time period.

Readers are usually of view to make a close observation to the indicators that support and make resistance before moving to any particular stock. As of now, the company’s stock is sitting at 38.89 points at 1st support level, the second support level is making up to 38.06. But as of 1st resistance point, this stock is sitting at 40.46 and at 41.20 for 2nd resistance point.

Daqo New Energy Corp. [DQ] reported its earnings at $0.27 per share in the fiscal quarter closing of 9/29/2020. The Analysts for Wall Street were expecting to report its earnings at $0.32/share signifying the difference of -0.05 and -15.60% surprise value. Comparing the previous quarter ending of 6/29/2020, the stated earnings were $0.03 calling estimates for -$0.01/share with the difference of 0.04 depicting the surprise of 400.00%.

Important Ratio’s To Watch

Meanwhile, turning our focus to liquidity, the Current Ratio for Daqo New Energy Corp. [NYSE:DQ] is 0.50. Likewise, the Quick ratio is also the same, showing Cash ratio at 0.26. Now if looking for a valuation of this stock’s amount to sales ratio it’s 2.04, it’s amount to book ratio is 1.26 and showing 169.02 of P/E (TTM) ratio.