Alert: Rating Downgrade (8/9/24)-Daqo New Energy Corp (NYSE: DQ).

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Stock Rating Downgrade

In the last week the Value Trend Rating for Daqo New Energy Corp (NYSE: DQ) weakened from B to C reflecting eroding fundamentals and low Appreciation Potential.

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Recent Price Action

Daqo New Energy Corp (NYSE: DQ) stock declined slightly by -0.2% on 8/9/24. The stock closed at $16.86. However, trading volume in this decline was exceptionally low at 48% of normal. The stock has been extremely weak relative to the market over the last nine months but has risen 4.8% during the last week.

Current PriceTarget Research Rating

DQ’s future returns on capital are forecasted to exceed the cost of capital. Accordingly, the company is expected to continue to be a modest Value Builder.

Daqo New Energy has a current Value Trend Rating of C (Neutral). With this rating, PTR’s two proprietary measures of a stock’s current attractiveness are providing very contradictory signals. Daqo New Energy has a very high Appreciation Score of 99 but a very low Power Rating of 9, leading to the Neutral Value Trend Rating.

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