JinkoSolar (JKS) Marked As A Dead Cat Bounce Stock
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified JinkoSolar as such a stock due to the following factors:
- JKS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.1 million.
- JKS has traded 60,305 shares today.
- JKS is up 3.6% today.
- JKS was down 9.2% yesterday.
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More details on JKS:
JinkoSolar Holding Co., Ltd., together with its subsidiaries, engages in the design, development, production, and marketing of photovoltaic products in the People's Republic of China and internationally. The company operates through two segments, Manufacturing and Solar Power Projects. JKS has a PE ratio of 8. Currently there are 4 analysts that rate JinkoSolar a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for JinkoSolar has been 1.0 million shares per day over the past 30 days. JinkoSolar has a market cap of $804.5 million and is part of the technology sector and electronics industry. Shares are up 28.8% year-to-date as of the close of trading on Monday.
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Analysis:
rates JinkoSolar as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 31.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, JINKOSOLAR HOLDING CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- The debt-to-equity ratio is very high at 2.82 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, JKS has a quick ratio of 0.54, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- The gross profit margin for JINKOSOLAR HOLDING CO is rather low; currently it is at 20.73%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.76% significantly trails the industry average.
- You can view the full JinkoSolar Ratings Report.
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