The stock has added 76% in the last six months
JinkoSolar Holding Co., Ltd. (NYSE:JKS) is one of the largest solar module manufacturers in the world, with nine production facilities globally and 22 overseas subsidiaries. The company distributes its solar products and sells its solutions and services to a diversified international utility, commercial, and residential customer base worldwide.
The security has seen a nice rebound on the charts since the $42 level helped capture a pullback in September. Several trendlines are guiding JKS higher, including the 30-day moving average, which contained a brief drop earlier this month. JKS has added 76% in the last six months, though it still sports a 5.6% year-to-date deficit, thanks in part to long-time pressure at the $64 mark.
On Nov. 15, JinkoSolar announced plans to release its third-quarter financial results before the markets open on Tuesday, Nov. 30. Analysts on Wall Street have the company’s earnings per share (EPS) coming in at $0.02 for the Q3 earnings report.
JinkoSolar stock has a very intriguing valuation at a market capitalization of $2.705 billion and a price-sales ratio of 0.55. In addition, JKS has a forward price-earnings ratio of 13.72, which is a huge improvement from its current unprofitable earnings track record.
However, JinkoSolar stock’s fundamentals are somewhat inconsistent and unstable. Although its revenues grew 40% between fiscal 2018 and fiscal 2020, the greentech company’s trailing 12-month revenues are currently down 3% in comparison to fiscal 2020. JinkoSolar also experienced a 5.5% revenue decline in fiscal 2018. Furthermore, the firm's net income decreased 74% in fiscal 2020, and its trailing 12-month net income is down $981 million since fiscal 2019.
Nonetheless, JKS continues to have a promising long-term outlook as a growth play. Aside from the expected return to profitability, the greentech brand had previously grown its net income 534% between fiscal 2017 and fiscal 2019, making JinkoSolar stock’s reward potential very attractive for less risk-averse investors.