Back to top

Analyst Blog

On Nov 21, Zacks Investment Research upgraded JinkoSolar Holding Co., Ltd. (JKS - Snapshot Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

This solar cell manufacturer has delivered positive earnings surprises in the last 2 quarters with an average beat of 594.3%. The strong performance has driven the company’s earnings estimates higher.
 
The Zacks Consensus Estimate for 2013 increased 295.6% in the last 7 days to 91 cents per share, reflecting estimated year-over-year growth of 108.9%. For 2014, the consensus increased 248.9% over the same time period to $1.71 per share, reflecting projected growth of 87.91%.

The company reported third quarter 2013 results with adjusted earnings per American Depositary Share (“ADS”) of $1.36, much ahead of the Zacks Consensus Estimate of 35 cents. The results reflect a diversified customer base and improvement in operational efficiency in a rapidly changing solar power environment.

JinkoSolar’s string of large-scale solar photovoltaic (PV) supply orders from countries like Australia, South Africa and the U.K., effective project execution skills as well as favorable renewable policy adoption by the Chinese government have elevated its position in the market.

Gradually, the company has transformed its operations from a traditional manufacturer to a one-stop energy solution provider. This will definitely enlarge the company’s customer base and market reach. In addition, the high quality cells and reasonable price attract customers from across the globe.

Other Stocks to Consider

Besides JinkoSolar, investors interested in the solar cell industry may consider stocks like Enphase Energy, Inc. (ENPH - Snapshot Report), First Solar, Inc. (FSLR - Analyst Report) and Trina Solar Ltd (TSL - Snapshot Report). All these stocks carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.