Looking for a cheap stock in a hot sector? JinkoSolar Holding Co. (JKS) is trading at forward P/E of just 3.4.
JinkoSolar manufactures a vertically integrated model in the solar sector, including making crystalline ingots, wafers, cells and mono- and multi- crystalline PV panels.
This Chinese-based company has customers around the world, including Italy, Germany, Belgium, Spain, the United States and France.
JinkoSolar Beat For the Third Quarter in a Row
On Feb 28, JinkoSolar surprised on the Zacks Consensus Estimate by 53%. Earnings per share were $2.36 compared to the $1.54 consensus. The company has averaged an impressive 58% earnings beat the last 3 quarters.
There were record solar product shipments in the quarter of 162.6 megawatts (“MW”), which was above the company’s guidance of a range of 130 MW to 140 MW. This was a 66% increase compared to the year ago period.
Revenue rose 156.9% to a record $267.7 million, far above the company’s projection of a range of $210 million to $220 million.
Zacks Consensus Estimates Rise
The company continues to have a bullish outlook for 2011. It is projecting revenue in the range of $1.4 billion to $1.5 billion, which would be double 2010’s revenue of $705.3 million.
Given the optimistic outlook, analysts have been moving to raise estimates.
5 estimates moved higher for 2011 in the last 30 days, pushing up the Zacks Consensus Estimate by 49% to $7.32 from $4.92 per share.
That is earnings growth of 21%.
While estimates have moved higher for 2012, so far, analysts see less growth. The 2012 Consensus Estimate jumped to $7.70 form $5.51 per share in the prior month which is just 5.8% earnings growth.
JinkoSolar Is a Cheap Stock
In addition to having a forward P/E under 5.0, JinkoSolar has all of the other metrics of a value stock.
It has a price-to-book of just 1.3, which is well under the value cut-off of 3.0.
The company also has a price-to-sales ratio of just 0.8. A ratio under 1.0 indicates value.
Given the company’s quick growth and low P/E, it also has a super low PEG ratio of 0.2 which also indicates value.
Shares On a Wild Ride
JinkoSolar only went public last year. But even in that short time period, shares have been very volatile, ranging from around $8 to as high as $41.
They are currently trading around $26 after recently spiking on the belief that with nuclear energy being questioned, solar energy could move to the forefront.
You can check out the 1-year chart below.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.
JINKOSOLAR HLDG (JKS): Free Stock Analysis Report
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