When Should You Buy JinkoSolar Holding Co., Ltd. (NYSE:JKS)?

While JinkoSolar Holding Co., Ltd. (NYSE:JKS) might not be the most widely known stock at the moment, it saw a significant share price rise of over 20% in the past couple of months on the NYSE. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today I will analyse the most recent data on JinkoSolar Holding’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for JinkoSolar Holding

What is JinkoSolar Holding worth?

According to my valuation model, JinkoSolar Holding seems to be fairly priced at around 3.82% above my intrinsic value, which means if you buy JinkoSolar Holding today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $55.28, 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.

Can we expect growth from JinkoSolar Holding?

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Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. JinkoSolar Holding's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has already priced in JKS’s positive outlook, 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 optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 3 warning signs for JinkoSolar Holding you should be mindful of and 1 of these doesn't sit too well with us.

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.