Chinese solar-module maker JinkoSolar (NYSE:JKS) has received a great deal of attention lately. But then, so have a number of clean energy companies. This begs the question of what makes JinkoSolar stock different from other stocks in this sector.
More than anything else, what makes the company stand out is its impressive revenues. Even with expectations running high in the red-hot solar niche, JinkoSolar continues to prove itself as a profitable venture.
Some folks, unfortunately, might be hesitant to take a look at JinkoSolar stock due to concerns about the U.S. presidential election on Nov. 3. Hopefully, I’ll be able to quell those concerns and show that JinkoSolar is worth investing in regardless of who’s in the White House.
JinkoSolar Stock at a Glance
As we saw happen with many other stocks, JKS stock declined in value in March due to the novel coronavirus crisis. When there’s a pandemic happening, it’s difficult for investors to hold on to their stocks because oftentimes they need to raise cash by any means necessary.
And so, the stock touched its 52-week low of $11.42 in March of this year. Yet, that’s not the end of the story. To say that the stock price recovered would be the understatement of the year.
It wasn’t an overnight success story, though. In a process that might be described as taxiing down the runway, JinkoSolar stock gradually climbed from $12 to $20 over a period of months.
Then the proverbial plane took off in September and October. The momentum built up until JinkoSolar stock reached its 52-week high of $90.20 on Oct. 21.
Thankfully, traders have another chance to get in at a more favorable price. Probably due to election-related jitters, the JinkoSolar share price retreated to $58 and change by the end of October.
Red, Blue and Green
There’s no way to ignore the election between President Donald Trump and former Vice President Joe Biden. This issue is the 800-pound gorilla in the room, so we have to address it.
The primary concern is that a “blue wave” (a Democratic sweep of the presidency and Congress) would be bullish for green energy, and therefore solar stocks, while a “red wave” (a Republican sweep) would tank the share price of stocks like JinkoSolar.
In response to this, I would contend that investors should worry less about blue and red, and focus more on green (energy, that is). The green energy movement is global. America isn’t the only participating nation — not even close.
Just recently, China, the world’s largest carbon emitter, promised that its emissions will peak by 2030. Moreover, the country plans to be carbon-neutral by 2060. Plus, South Korea announced its intention to be a net-zero economy by the year 2050.
Revenues Heat Up
Even the biggest skeptics can’t deny that JinkoSolar is on solid financial ground. If there are any doubts, just take a look at the company’s second-quarter 2020 fiscal results.
Keep in mind that the following data points all reflect the company’s financials during a global pandemic. Even in the most challenging times, JinkoSolar has been able to execute.
For the second quarter, JinkoSolar reported $1.196 billion (RMB 8.45 billion) in total revenues, beating the analysts’ consensus estimate of $1.075 billion.
Due primarily to an increase in shipments of solar modules, JinkoSolar managed to achieve a 10% revenue increase on a year-over-year basis. Furthermore, the company’s total solar module shipments improved by 32% year-over-year.
The Takeaway
Fearful of a red or blue wave in 2020? There’s no need to avoid JinkoSolar stock this year because of the election.
The color to focus on is green, which represents the rising tide of the green energy movement as well as the dollars JinkoSolar saw in the second quarter and will continue to see in future earnings cycles.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
