Jinko and Enphase eye more rallies, and investors should look to buy

As the world shifts from fossil fuels, it is no doubt that alternative energy stocks will benefit. JinkoSolar Co. Ltd (NYSE:JKS) and Enphase Energy Inc. (NASDAQ:ENPH) are some of those stocks. The Shanghai-based and NYSE listed JinkoSolar ranks as the largest maker of solar panels. On the other hand, California and Nasdaq-based Enphase Energy offer software-based energy solutions. 

Both Jinko and Enphase conspicuously operate in an energy transition sector and are poised for growth. Comparing their earnings, Jinko reported revenue of RMB16.39 billion or $2.57 billion in Q4 2021, up from RMB9.42 billion in the prior year. Analysts project a revenue of $2.14 billion when Jinko reports Q1 2022 results on April 28. The company gave a glimpse of the Q1 results, saying that its Jiangxi Jinko unit could rake in an income jump of 58% to 74%.

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On the other hand, Enphase energy reported its Q1 2022 earnings on April 26. Revenues hit a record $441.3 million, pushing the stock up 11%. The company has a guidance of higher revenue of $490 million to $520 million in Q2. Evidently, both stocks are worthy of investors’ attention.

Jinko’s YTD returns surpass Enphase

Technically, comparing year-to-date returns show Jinko with over 21% gains. Enphase has a negative return of 18% in the same period. Jinko trades close to its previous tops, while Enphase’s $165 price is way below its previous top of $282.

Concluding thoughts

Jinko and Enphase are two stocks supported by strong fundamentals. As Jinko reports earnings on April 28, investors will look to see if it beats the guidance. The stock could reclaim the previous top of $63 if it breaks above the $56 level. Enphase’s strong results and guidance make it a suitable buy above the $150 support.