Solar Stocks Form Bases as Healthcare and Solar Power Sectors


Solar stocks and healthcare names are rising this week, and Daqo New Energy (DQ) and AMN Health (AMN) are the Heads of sector in their respective industries.


DQ is clearly above a buy point of 53.70 in a consolidation, while AMN is above its major moving averages and an entry of 107.83 cup with handle.

The DQ fell 2.8% on Friday, but it still holds above the 21-day exponential moving average and its 50- and 200-day lines.

Solar stocks rose this week when President Joe Biden said Wednesday he was launching a $500 million program to place clean energy demonstration projects on current or former mining lands across the country.

DQ is ranked No. 1 in IBD’s solar power group, which is now ranked No. 18 out of 197 industry groups. The China-based company has a perfect composite score of 99, a perfect relative strength score of 99, and a near-perfect EPS score of 98. It has a three-year EPS growth rate of 187%.

Solar stocks surge as consumers seek alternative fuels

Alternative energy stocks rose as consumers seek non-oil fuels as oil and gasoline prices soared. Crude oil prices have soared to more than $108 a barrel a day as rising inflation persists and the Russian-Ukrainian war rages on.

AMN expects that if the United States enters a recession, the health care sector will be spared. The company isn’t technically in the healthcare industry; it is in the business services staffing industry.

As the healthcare industry grows, hospitals and clinics will need more employees. AMN provides permanent and temporary staff of doctors and nurses to health care facilities across the United States

The S&P Health Care Select Sector ETF (XLV) fell just 2.4% in June, compared to a 9.4% decline for the S&P 500.

The AMN stock has a relative strength line near the new high ground, confirming the strength of the stock. He just erased a pattern of mug with handle. The grip started with the stock’s peak on June 15th.

AMN Stock Holds as Healthcare Stocks Rise

The stock ranks first among its peers in the Business Services – Personnel industry group, tied with global hudson (HSON). AMN has a strong composite rating of 97 and an EPS rating of 97, according to IBD Stock check. The group itself ranks 110th out of IBD’s 197 industry groups.

AMN has a three-year EPS growth rate of 42%. In the second quarter ahead, analysts polled by FactSet expect AMN’s earnings to rise 81% to $2.97 per share on sales of $1.37 billion, up 60%. This year, analysts expect earnings of $10.33 per share, up 29%, on sales of $4.98 billion.

Follow Michael Molinski on Twitter @IMmolinski


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