Why JinkoSolar Holding Co., Ltd. Shares Lit Up Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of JinkoSolar Holding Co., Ltd. (NYSE: JKS  ) jumped more than 11% Thursday thanks to a positive analyst note.

So what: In a note to clients yesterday, analysts at ING Group reiterated their buy rating on JinkoSolar stock. JinkoSolar shares fell around 3% Tuesday after the company turned in mixed first-quarter results. Specifically, revenue grew 73.1% year over year, to $323.9 million, which translated to non-GAAP earnings of $0.20 per American depositary share. Analysts, on average, were looking for higher adjusted earnings of $0.40 per share on lower sales of $288.6 million.

Now what: I have to agree with both today's reiteration and fellow Fool Travis Hoium, who noted earlier this week that JinkoSolar's long-term prospects remain firmly intact. What's more, JinkoSolar's sequential drop in shipments during the seasonably slow Q1 was significantly smaller than the industry as a whole. Given a quickly improving global solar market, and with shares currently trading around 6.3 times next year's expected earnings, I still think investors would do well to hang onto JinkoSolar shares.

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  • Report this Comment On May 29, 2014, at 9:51 PM, DalePlourde wrote:

    Thank-you, it was a significant run-up considering the low EPS Q1. As a long-term shareholder, I did not realize there was an upgrade by an analyst. I did not see anything about the upgrade anywhere in any of the stock news I read in the mornings, which is unusual. As well the whole market responded well to the drop in US jobless claims.

    Jinko is so volatile it goes up and down like a see saw, but fundamentally demand seems steady and growing. I think it and all solars will be volatile into Q2 earnings. I am long solar globally, especially as the costs of solar become increasingly less expensive at producing electricity than conventional fuels, as well as concerns re: pollution and climate change increase.

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