My energy bill is just too darn high!
That’s what my neighbor Stan told me last month.
He’s right. According to the U.S. Energy Information Administration, the average price of natural gas is up 179% in the past year!
The world faces an energy crisis. High oil and natural gas prices, coupled with Russia’s invasion of Ukraine, are pushing the world away from Russian energy sources.
That leaves alternative energy … solar, for instance:
The International Renewable Energy Agency said the world generated 707 gigawatt-hours of solar power in 2020.
By 2050, that will increase a massive 1,885%!
Today’s Power Stock is a leading producer of solar panel components: Daqo New Energy Corp. (NYSE: DQ).
Daqo New Energy manufactures and sells polysilicon — small crystals that are the base material in solar cells.
You’ll find its products in solar ingots, wafers, cells and more across China.
Daqo stock scores a “Strong Bullish” 81 out of 100 on our Stock Power Ratings system, and we expect it to beat the broader market by 3X in the next 12 months.
DQ Stock: Outstanding Fundamentals
The first quarter of 2022 was a blockbuster for DQ.
Two items that stood out to me were:
- The company’s gross profit was $813.6 million, compared to $239.8 million in first-quarter 2021 — a 239% increase quarter-over-quarter!
- That profit came from $1.3 billion in sales … for the quarter alone! That’s a 223.7% jump over the same quarter a year ago.
DQ scores in the top 5% on all three of our fundamental factors — including perfect 100s on both quality and growth.
Daqo’s return on equity is 68%, which trounces its industry peers’ average of negative 4.8%.
The company’s gross margin is 68.5%, while its peers only average half that!
I shared its quarterly growth above. For the year, DQ’s earnings-per-share annual growth rate is 457.3%, and its sales growth rate is 148.5%.
Between March and May of this year, DQ stock traded sideways as investors struggled to find positive sentiment.
As its last quarterly report — and those massive numbers — sank in, DQ found solid footing and has jumped 65.2% since mid-May.
That’s the definition of the “maximum momentum” we love to see in stocks.
Daqo New Energy Corp. stock scores an 81 overall on our proprietary Stock Power Ratings system.
That means we’re “Strong Bullish” and expect it to beat the broader market by at least three times in the next 12 months.
Old energy is a hot sector to buy right now.
However, new energy — including solar — is gaining traction as the world struggles with high oil and gas prices.
This is why Daqo New Energy Corp. is a Strong Bullish stock to add to your portfolio.
Stay Tuned: My Favorite Aerospace Stock
Remember: We publish Stock Power Daily five days a week to give you access to the top companies that our proprietary Stock Power Ratings identify!
Stay tuned for the next issue, where I’ll share all the details on a terrific defense stock to buy.
Matt Clark, CMSA®
Research Analyst, Money & Markets
P.S. Got a comment about Stock Power Daily? Reach my team and me anytime at Feedback@MoneyandMarkets.com.