Staffing, Solar Stocks Form Bases As Health Care And Solar Energy Lift Sectors

Solar stocks and health care names are surging this week, and Daqo New Energy (DQ) and AMN Healthcare (AMN) are the Sector Leaders in their respective industries.


DQ is sharply above a 53.70 buy point in a consolidation, while AMN is above its key moving averages and a 107.83 cup-with-handle entry.

DQ fell 2.8% on Friday but it’s still holding above the 21-day exponential moving average and its 50-day and 200-day lines.

Solar stocks got a boost this week when President Joe Biden said on Wednesday that he’s launching a $500 million program to place clean-energy demonstration projects atop current or former mine lands across the country.

DQ is ranked No. 1 in IBD’s solar energy group, which is now ranked No. 18 out of 197 industry groups. The China-based firm has a perfect Composite Score of 99, a perfect Relative Strength Rating of 99, and an almost-perfect EPS Rating of 98. It has a three-year EPS growth rate of 187%.

Solar Stocks Gain As Consumers Seek Alternative Fuels

Alternative-energy stocks have been ramping up as consumers seek non-oil fuels as oil and gasoline prices have soared. Crude oil prices have climbed to over $108 a barrel a day, as rising inflation persists and the Russia-Ukraine war rages on.

AMN is trading on expectations that if the U.S. enters a recession, the health care sector will be spared. The firm is not technically in the health care industry; it is in the commercial services staffing industry.

As the health care sector ramps up, hospitals and clinics will need more employees. AMN provides permanent and temporary staffing of doctors and nurses to health care facilities throughout the U.S.

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

AMN stock has a relative strength line near new-high ground, confirmation of the stock’s strength. It just cleared a cup-with-handle pattern. The handle started with the stock’s June 15 peak.

AMN Stock Holds As Health Care Stocks Rise

The stock holds the No. 1 rank among its peers in the Commercial Services-Staffing industry group, tied with Hudson Global (HSON). AMN has a solid 97 Composite Rating and an EPS rating of 97, according to IBD Stock Checkup. The group itself sits at No. 110 out of IBD’s 197 industry groups.

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

Follow Michael Molinski on Twitter @IMmolinski


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