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Inflation Report

Two Stocks to Consider Amid Inflationary Environment: DQ and WTI

Feb 10, 2023

Daqo New Energy Corporation (NYSE: DQ)

Section 1: Company Fundamentals

1.1 Summary Table

1.2 The Key Positives & Negatives

1.3 Key Metrics

The company has been successful in controlling its spending and giving consistency to the revenues even throughout times of growing inflation across the global economies, which has led to higher net margins for the company than its rivals. Additionally, the company has generated free cash flows that are more than two times higher year over year due to the increased efficiency in managing profitability and sales.

Section 2: Daqo New Energy Corporation (“Buy” at the current market price of USD 41.84, as of February 10, 2023, at 07:05 am PST)

2.1 Company Details

2.2 Technical Guidance and Stock Recommendation  

W&T Offshore Inc (NYSE: WTI)

Section 1: Company Fundamentals

1.1 Summary Table

1.2 The Key Positives & Negatives

1.3 Key Metrics

Even throughout periods of rising inflation across all major economies, the firm was able to keep costs under control and maintain revenue constancy, which allowed it to earn larger net profit margins than its competitors. Additionally, the company has better short-term liquidity compared to its peers, which is evident through a higher current ratio.

Section 2: W&T Offshore Inc (“Buy” at USD 5.82, current market price as on February 10, 2023, at 06:35 am PST)

2.1 Company Details

2.2 Valuation and Technical Guidance

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 10, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.


Disclaimer-

Kalkine Equities LLC provides general information about companies and their securities. The information contained in the reports, including any recommendations regarding the value of or transactions in any securities, does not take into account any of your investment objectives, financial situation or needs. Kalkine Equities LLC is not registered as an investment adviser in the U.S. with either the federal or state government. Before you make a decision about whether to invest in any securities, you should take into account your own objectives, financial situation and needs and seek independent financial advice. All information in our reports represents our views as at the date of publication and may change without notice.

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