Daqo New Energy, like many solar energy companies, put up dazzling numbers this past year despite the market uncertainty. For example, its quarterly earnings growth ranged from 83% to over 1,000% during that time. On Monday, the Relative Strength Rating for Daqo stock rose to 81, topping a key benchmark.
No. 1 Company In No. 1 Group
Daqo New Energy is the No. 1 ranked company in the solar energy group, the top ranked group on IBD's list of 197 industries. The 81 RS Rating means that China-based Daqo stock has outperformed 81% of all stocks over the past year. Market research shows that the best stocks often have an RS Rating above 80 in the early stages of their moves.
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Daqo stock dropped to a 2022 bear market intraday low 32.20 on March 15. It's risen about 68% and traded at about 53 Monday afternoon, up roughly 1.2%. While now is not an ideal time to invest, see if the stock is able to form a chart pattern and break out.
The company showed 167% earnings growth last quarter, to $8.18 per share. Sales soared 182% to $1.24 billion. The next quarterly numbers are expected on or around Oct. 28.
Daqo New Energy earns the No. 1 rank among its peers in the Energy-Solar industry group. Enphase Energy and JinkoSolar are also among the top five in the group.
Other Ratings Are Mixed
Daqo stock also has a best-possible 99 Composite Rating, a group of five other key metrics. However, it has a mild D+ Accumulation/Distribution Rating, on an A+ to E scale with A+ tops. This indicates that big institutional investors such as ETFs and mutual funds aren't on board yet.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
This exclusive rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the trailing 52 weeks holds up against all the other stocks in our database.
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