JinkoSolar Shares Rally on Major US Supply Deal

JinkoSolar Holding Co., Ltd. saw its stock price surge significantly during Monday's trading session, closing at $22.66 with a substantial 5.20% gain. This upward movement followed the company's announcement that it secured a module supply agreement for a Costco warehouse project located in Richland, Washington.

The solar energy provider will supply approximately 1,000 of its EAGLE G6 modules for the commercial installation. A distinguishing feature of this project is its registration under Washington state's first approved solar sustainability initiative, the EAGLE Preserve program. This environmental program ensures that all modules will be recycled at no cost once they reach the end of their operational lifespan, providing JinkoSolar with a competitive edge in the marketplace.

Market participants responded favorably to this development, suggesting investors view the company's emphasis on sustainable solutions as a viable strategy for gaining traction in the highly competitive American solar market.

Should investors sell immediately? Or is it worth buying JinkoSolar?

Critical Financial Test Approaches

Despite the recent positive performance, JinkoSolar faces an important challenge in the coming weeks. The company is scheduled to release its second and third quarter financial results on November 17th. According to analyst projections, the third quarter may show a loss of $2.56 per share, with revenue expected to reach $2.66 billion.

Technical indicators present a mixed picture for the stock. While the current price sits above the 200-day moving average of $21.23, it faces potential resistance near the 50-day moving average of $23.97. The analytical community maintains a cautious stance toward JinkoSolar, despite a recent rating improvement from "Sell" to "Hold" by Wall Street Zen.