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Reasons to Add JinkoSolar (JKS) to Your Portfolio Right Now

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JinkoSolar Holding Co. Ltd. (JKS - Free Report) , with its rising estimates and strong return on equity (ROE), is a strong candidate for your portfolio.  The solar products manufacturer will benefit from its stable financial position and rapid increase in demand.

Let’s explore the factors that make this Zacks Rank #1 (Strong Buy) company a strong investment pick at the moment.

Growth Projections & Surprise History

The Zacks Consensus Estimate for JKS’ 2023 earnings per share (EPS) is pegged at $10.74, showing an improvement of 4.6% in the past 60 days. The consensus estimate for 2024 EPS is pegged at $11.65, showing an improvement of 12% in the past 60 days.

The Zacks Consensus Estimate for 2023 sales is pinned at $16.07 billion, suggesting a year-over-year improvement of 30.7%. The consensus estimate for 2024 sales stands at $17.39 billion, suggesting a year-over-year improvement of 8.2%.  

The stock delivered an average earnings surprise of 102.66% in the previous four quarters.

Return on Equity

Return on Equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, JinkoSolar’s ROE is 14.14%, which is higher than the industry’s average of 6.72%. This indicates that the company has been utilizing its funds more effectively than its peers in the solar power industry.

Debt Position

At the end of third-quarter 2023, JKS’ total debt to capital was 30.51%, much better than the industry’s average of 60.18%.

The times interest earned ratio at the end of the third quarter was 8.25. The ratio, being greater than one, reflects JinkoSolar’s ability to meet future interest obligations without difficulties.

Dividend History

On Sep 26, 2023, JinkoSolar announced a dividend of $1.48 per share. JKS’ current dividend yield is 4.16%, better than the Zacks S&P 500 Composite’s 1.37%.

Global Presence and Rising Demand

JinkoSolar enjoys dominance in the China region, accounting for 40% of its total module shipments. North America and the Asia-Pacific region saw an increase in module shipments during the third quarter. JKS expects more than 12 gigawatts (GW) of integrated capacity globally, including around 2 GW in the United States.

The demand for JinkoSolar’s N-type products has been rising globally. At the end of the third quarter, JKS delivered 190 GW of solar modules across 190 countries and regions. It expects 2024 module shipments to be around 23 GW.

Price Performance

In the past three months, shares of JKS have rallied 17.1% against the broader industry’s 0.4% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks from the same sector are Constellation Energy Corp. (CEG - Free Report) , Sunoco LP (SUN - Free Report) and Nextracker Inc. (NXT - Free Report) . CEG and SUN carry a Zacks Rank #1, while NXT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CEG’s long-term earnings growth rate is 26.3%. The company delivered an average earnings surprise of 37.04% in the last four quarters.

The Zacks Consensus Estimate for SUN’s 2023 EPS implies an improvement of 10.9% from that recorded in 2022. The company delivered an average earnings surprise of 28.33% in the last four quarters.

NXT’s long-term earnings growth rate is 35.2%. The Zacks Consensus Estimate for fiscal 2024 sales implies an improvement of 23.2% from that recorded in fiscal 2023.


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