DQ Should I Buy
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Daqo New Energy Corp (DQ) is not a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's deteriorating financial performance, negative analyst sentiment, and lack of positive trading signals outweigh any potential for short-term price movements. The oversupply in the polysilicon market and weak financial metrics make this stock unsuitable for long-term investment at this time.
The MACD is slightly positive but contracting, RSI is neutral at 41.532, and moving averages are converging, indicating no strong trend. The stock is trading near its pivot level of 24.604, with resistance at 25.79 and support at 23.418. Overall, technical indicators do not suggest a strong buy opportunity.
No significant positive catalysts identified. The company has a 70% chance to gain 2.39% in the next day, but this is a short-term movement and not relevant for long-term investors.
Gross margin has turned negative, and there is no recent news or insider activity to suggest a turnaround.
In Q3 2025, revenue increased by 23.23% YoY to $244.6M, but net income dropped by 75.43% YoY to -$14.92M. EPS fell by 77.78% YoY to -$0.04, and gross margin turned negative at 3.95%. These metrics indicate severe profitability challenges.
GLJ Research downgraded the stock to Sell with a price target of $18.13, citing oversupply in the polysilicon market. This represents a significant downside from the current price of $24.
