|Contributor / Partner
Strategy published on : 03/26/2020 | 09:31
long trade on a pullbackLive
Entry price : 14.2$
Target : 21.9$
Stop-loss : 11.4$
Cancellation Level : 18.5$
Potential : 54.23%
Shares in JinkoSolar Holding Co., Ltd. reflect an interesting technical chart pattern allowing for a bet on a reversal of the medium term trend.
Investors should buy the stock at current prices near $ 14.2 in order to target the $ 21.9.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
● The prospective high growth for the next fiscal years is among the main assets of the company
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.43 for the 2019 fiscal year.
● Its low valuation, with P/E ratio at 5.45 and 3.7 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● The company sustains low margins.
● The group shows a rather high level of debt in proportion to its EBITDA.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 18.7 USD