In the last 52 weeks, JinkoSolar Holding Co. Ltd. (NYSE: JKS) has traded as low as $7.11, and it was previously featured as one of the top bargain picks in the renewable energy sector. Today, stock is trading above $14, but it is still considered a bargain in the small cap market. What makes this stock so promising, and should investors go beyond the $10 barrier to buy today?
JinkoSolar is a Chinese photovoltaic company that manufactures vertically integrated solar products ranging from silicon and wafers, to cells and solar modules. It was founded in 2007 and is based in Shangrao, China. The company generated four years of consistent double-digit revenue growth from 2014 to 2017, with sales dropping by -3.38% in 2018. This coincided with a slump in the solar market which is expected to pick up in the coming years as residential and commercial solar becomes more viable. Even when sales fell last year, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 60.56%, indicating excellent fiscal management.
As a technology leader in the solar industry that is recognized globally, JinkoSolar will benefit from higher demand over the next ten years. Analysts have predicted a 20% long-term earnings growth rate, which is also reflected by an average target price of $153.37.
Despite no longer being below $10, JinkoSolar is still a bargain at today’s price. For investors looking to buy early into the solar market, there are few other picks that look as compelling.
- 1 Year Price Growth: 28%
- YTD Price Growth: 05%
- 3 Month Price Growth: -34.39%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions