Should I Buy DQ? DQ 2026 Analysis

Should You Buy Daqo New Energy Corp (DQ) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

25.660

1 Day change

-3.32%

52 Week Range

36.590

Analysis Updated At

2026/01/28

Not a good buy right now for a beginner long-term investor who wants to act immediately. DQ has a mildly improving short-term technical tone, but fundamentals (profitability and margins) are weak in the latest quarter, and there are no near-term catalysts or strong proprietary buy signals to justify jumping in today. I would hold/avoid initiating a new long-term position at this moment.

Technical Analysis

Price/Trend: DQ is at 26.54 post-market after a -2.50% regular-session move, sitting near the pivot (26.204), which is a key inflection area. Momentum: MACD histogram is positive (0.238) and expanding, which supports a potential short-term rebound attempt. RSI(6) ~50 is neutral, showing no strong oversold/overbought edge. Moving averages are converging, suggesting a transition/indecision zone rather than a clean uptrend. Levels: Support S1 ~24.37 (then S2 ~23.237). Resistance R1 ~28.037 (then R2 ~29.17). Practical read: technicals are not bearish-collapse, but there isn’t a clear, high-conviction uptrend signal—more like a range with upside capped unless it can reclaim and hold above ~28.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Sentiment/Positioning: Put-call ratios below 1 (OI PCR 0.61; Volume PCR 0.64) indicate a call-leaning (more bullish) options stance. Volatility: Implied vol is very high (30D IV ~87.24; HV ~92.55) with IV percentile ~84.8, implying the market expects big swings and is pricing in elevated uncertainty. Activity: Today’s options volume (886) is below the 5D/10D averages (1140.6/1781.1), while open interest is sizable (72,405), suggesting positioning exists but today’s flow isn’t strongly confirmatory. Bottom line: Options sentiment is modestly bullish, but the very high IV signals risk/uncertainty and does not, by itself, make this a clean long-term entry.

Technical Summary

Sell

Buy

Positive Catalysts

Technical momentum is improving (positive, expanding MACD) while price is holding near the pivot area.
Options skew is call-favored (PCRs < 1), implying traders are not positioning defensively.
Revenue growth in the latest quarter was positive (+23.23% YoY), indicating demand/revenue recovery potential even if profitability is weak.

Neutral/Negative Catalysts

Latest quarter profitability deterioration: net income negative and margins sharply weaker, which is a major long-term red flag.
No supportive news flow in the past week—no visible event-driven catalyst to re-rate the stock near-term.
Elevated implied volatility (very high IV percentile) implies uncertainty and potential sharp downside swings.
Similar-pattern projection shows a slightly negative next-month expectation (-2.39%), suggesting upside may be limited without a catalyst.

Financial Performance

Latest quarter: 2025/Q3. Revenue increased to $244.601M (+23.23% YoY), but profitability worsened: Net Income fell to -$14.918M (-75.43% YoY), EPS -0.04 (-77.78% YoY). Gross margin dropped to 3.95, indicating significant margin compression. Overall: top-line growth is present, but the business is not converting it into earnings; for a long-term beginner investor, this weak profitability trend reduces the attractiveness of buying immediately.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No analyst rating/price target change data was provided, so a recent trend summary cannot be verified from the dataset. Wall Street-style pros (based on the provided data): improving revenue growth and some technical stabilization. Cons: negative earnings and very weak margins make a sustained long-term thesis harder to justify without evidence of margin recovery.

3 Analyst Rating

Wall Street analysts forecast DQ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DQ is 28.77 USD with a low forecast of 18.3 USD and a high forecast of 38 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

2 Hold

0 Sell

Moderate Buy

Current: 26.540

Low

18.3

Averages

28.77

High

Current: 26.540

Low

18.3

Averages

28.77

High

Goldman Sachs

Neutral

maintain

AI Analysis

2025-10-29

Reason

Goldman Sachs

Price Target

AI Analysis

2025-10-29

maintain

Neutral

Reason

Goldman Sachs raised the firm's price target on Daqo New Energy to $18.30 from $16.20 and keeps a Neutral rating on the shares.

Roth Capital

Neutral

maintain

$25 -> $30

2025-10-28

Reason

Roth Capital

Price Target

$25 -> $30

2025-10-28

maintain

Neutral

Reason

Roth Capital raised the firm's price target on Daqo New Energy to $30 from $25 and keeps a Neutral rating on the shares. The company delivered a Q3 earnings beat and issued a healthy Q4 guide while also recording a positive gross margin for the first time since Q1 of 2024, the analyst tells investors in a research note. While this is largely due to a reversal of an inventory write-down, the management believes that positive gross margins could continue given expected average sales price recovery and cost reductions, the firm added.

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DQ Should I Buy

DQ Should I Buy

Should You Buy Daqo New Energy Corp (DQ) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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