On May 27, Zacks Investment Research upgraded JinkoSolar Holding Co., Ltd. (JKS - Free Report) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
JinkoSolar has been witnessing rising estimates on the back of consistently strong performance. This solar company reported positive earnings surprises in all of the last four quarters with an average beat of 58.59%. The long-term earnings growth is pegged at 20.0%. JinkoSolar is scheduled to release first-quarter 2016 earnings today.
The company’s solar module shipments in the fourth quarter of 2015 increased 58.6% year over year to 1,709 .9 megawatts (MW). Thanks to its high-quality modules, JinkoSolar keeps on receiving domestic as well as international contracts. JinkoSolar expects module shipments in the range of 1.3 Gigawatts (GW) to 1.4 GW in the first quarter.
Usage of alternate sources of energy, primarily solar, is set to rise on a global scale. China is aiming to produce 143 GW of solar power by 2020, while its neighbor India aims to add 100 GW of solar energy by 2022. Japan is also aiming to add substantial solar energy to its power generation mix.
Booming growth opportunities in Asia could drive the performance of a host of Chinese solar companies like JinkoSolar, Yingli Green Energy Holding , JA Solar Holdings and ReneSola Ltd. (SOL - Free Report) among others.
For JinkoSolar, solid performances have driven the Zacks Consensus Estimate for 2016 up 3.7% to $5.08 per share over the last 60 days. For 2017, the Zacks Consensus Estimate climbed 2.1% to $5.83 per share, over the same time frame.
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