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JinkoSolar (JKS) Stock Sinks As Market Gains: What You Should Know

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JinkoSolar (JKS - Free Report) closed the most recent trading day at $22.70, moving -1.3% from the previous trading session. This change lagged the S&P 500's 0.82% gain on the day. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 0.64%.

Coming into today, shares of the solar power product maker had gained 16.81% in the past month. In that same time, the Oils-Energy sector lost 4.3%, while the S&P 500 lost 4.58%.

Wall Street will be looking for positivity from JKS as it approaches its next earnings report date. This is expected to be June 28, 2019. The company is expected to report EPS of $0.23, up 360% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $895.40 million, up 22.98% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.98 per share and revenue of $4.43 billion, which would represent changes of +81.71% and +18.46%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for JKS. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.34% higher. JKS is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, JKS is holding a Forward P/E ratio of 7.72. For comparison, its industry has an average Forward P/E of 16.89, which means JKS is trading at a discount to the group.

Meanwhile, JKS's PEG ratio is currently 0.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. JKS's industry had an average PEG ratio of 0.76 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 87, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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