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JinkoSolar (JKS) Gains But Lags Market: What You Should Know

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JinkoSolar (JKS - Free Report) closed at $51.02 in the latest trading session, marking a +0.85% move from the prior day. This move lagged the S&P 500's daily gain of 1.44%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.

Heading into today, shares of the solar power product maker had lost 8.35% over the past month, lagging the Oils-Energy sector's loss of 2.11% and the S&P 500's gain of 2.28% in that time.

Wall Street will be looking for positivity from JinkoSolar as it approaches its next earnings report date. On that day, JinkoSolar is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 270%. Our most recent consensus estimate is calling for quarterly revenue of $3.3 billion, up 41.75% from the year-ago period.

JKS's full-year Zacks Consensus Estimates are calling for earnings of $6.70 per share and revenue of $16.31 billion. These results would represent year-over-year changes of +28.6% and +32.66%, respectively.

Investors should also note any recent changes to analyst estimates for JinkoSolar. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.1% lower. JinkoSolar currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that JinkoSolar has a Forward P/E ratio of 7.55 right now. Its industry sports an average Forward P/E of 28.03, so we one might conclude that JinkoSolar is trading at a discount comparatively.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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