Clean energy companies are having a moment as people and businesses look for ways to reduce their carbon footprint. Renewable energy is a hot space for investors to get in on as a way to future-proof your portfolio as experts believe these companies are going to continue to grow.
The global renewable energy market is expected to reach $1.1 trillion by 2027, suggesting that there is huge potential in this sector for investors. So without further ado, here is one solar energy stock worth watching right now.
Should I invest in JinkoSolar Holding?
JinkoSolar Holding (NYSE: JKS) is a solar panel manufacturer based in Shanghai, China. The firm is one of the largest photovoltaic (the conversion of light into electricity) manufacturers in the world. In addition, it also builds commercial solar energy projects and offers solar system integration services in various international markets.
The stock is pretty volatile and is up only 5% over the last 12 months. However, if we look at the past five years, it has produced consistent gains and has increased 164%. Many investors see this as a perfect long-term opportunity for those wanting to get a piece of the thriving solar energy pie. While the company admitted that it is currently struggling with supply chain issues due to sharp polysilicon price increases, these issues are likely to be resolved post-pandemic, along with many other challenges experienced by other manufacturers.
On the financial side, things look good. In the second quarter, the company posted earnings per share of $0.89, which smashed estimates, on sales of $1.23 billion, which also topped analysts’ estimates. In other positive news, JinkoSolar’s shipments also jumped 16.4% year-over-year.
In August, the stock dropped over concerns that the company might be subject to import restrictions. The Washington Post reported that millions of dollars worth of JinkoSolar’s solar panels were detained by U.S. Customs and Border Protection agents, which worried investors, but these issues have been resolved now and things are looking up for the clean energy company.
While the solar space is a very competitive market, JinkoSolar is looking like a promising company as it expands its operations internationally and is definitely one to watch.
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Financial Writer at MyWallSt
Nicole's favorite stock is Etsy because she loves its original and handmade items. She believes people are going to stop buying mass-produced items and start purchasing ‘one of a kind’ fashions and furnishings. In a world of sameness, Etsy has the advantage.