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

Zacks Equity Research

JinkoSolar (JKS) closed the most recent trading day at $19.53, moving +1.67% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 1.11%.

Prior to today's trading, shares of the solar power product maker had lost 13.78% over the past month. This has lagged the Oils-Energy sector's loss of 1.9% and the S&P 500's gain of 3.18% in that time.

JKS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.28, down 31.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $928.36 million, up 1.36% from the prior-year quarter.

JKS's full-year Zacks Consensus Estimates are calling for earnings of $2.79 per share and revenue of $4.27 billion. These results would represent year-over-year changes of +70.12% and +14.18%, respectively.

Investors should also note any recent changes to analyst estimates for JKS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 6.38% lower within the past month. JKS is currently a Zacks Rank #5 (Strong Sell).

Investors should also note JKS's current valuation metrics, including its Forward P/E ratio of 6.89. For comparison, its industry has an average Forward P/E of 23.02, which means JKS is trading at a discount to the group.

We can also see that JKS currently has a PEG ratio of 0.34. 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. The Solar was holding an average PEG ratio of 0.89 at yesterday's closing price.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% 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.

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

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