Yahoo Finance Is Now The Time To Look At Buying JinkoSolar Holding Co., Ltd. (NYSE:JKS)?
JinkoSolar Holding Co., Ltd. (NYSE:JKS), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine JinkoSolar Holding’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for JinkoSolar Holding
Is JinkoSolar Holding Still Cheap?
According to my valuation model, JinkoSolar Holding seems to be fairly priced at around 8.46% above my intrinsic value, which means if you buy JinkoSolar Holding today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $30.91, there’s only an insignificant downside when the price falls to its real value. Furthermore, JinkoSolar Holding’s low beta implies that the stock is less volatile than the wider market.
What kind of growth will JinkoSolar Holding generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of JinkoSolar Holding, it is expected to deliver a relatively unexciting earnings growth of 2.4%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What This Means For You
Are you a shareholder? JKS’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on JKS, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Be aware that JinkoSolar Holding is showing 3 warning signs in our investment analysis and 2 of those shouldn't be ignored...
If you are no longer interested in JinkoSolar Holding, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
