U.S. Solar Installations Are Absolutely Booming – Here’s Your Profit Play

Hopefully, you’ve been using the Money Morning Stock VQScore™ system.

The VQScore is picking winner after winner using a proven, proprietary formula for selecting stocks.

In 2019 the VQScore has found the honeypot of all honeypots, a sector that is generating huge profits for investors that followed our lead: solar.

This week we are going back to the well with another highly rated VQScore stock handpicked from this top sector. As the solar industry continues to boom, today’s stock is poised to absolutely skyrocket.

Best of all, the solar industry’s growth means we can pull in pure profits no matter what the broader market is doing.

Forget about the noise of a trade war with China.

Instead, stick to sectors like solar that are doing well thanks to evolutionary trends that will not be stopped any time soon.

The cost of solar technology has dropped precipitously, fueling today’s growth.

Tomorrow’s growth will be even more spectacular.

The Solar Energy Industries Association noted recently that solar installation in the United States had hit 2 million. And that’s expected to double to 4 million by 2024.

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The combination of state mandates and tax credits with lower cost of installation has fueled massive growth in the sector.

No wonder the previous solar stocks identified by the VQScore are rocketing higher.

In January we recommended Vivint Solar Inc. (NASDAQ: VSLR), and it promptly gained 47%, far outpacing the rest of the market. In fact, the S&P 500 is up just 12% in that same time.

Other winning picks include Canadian Solar Inc. (NASDAQ: CSIQ), which is up 35% since selected in July 2018, and SolarEdge Technologies Inc. (NASDAQ: SEDG), up 34% in just over a month.

There is a reason these stocks have done so well, and there is a reason we were able to find them.

The answer is the VQScore.

Our algorithm finds the stocks that operate in the best industries poised for appreciation.

Given the expectation of 100% growth in solar installations in just five years, there is still time to buy into solar stocks.

Just this week, VQScore is flashing “Buy” on a new solar name that you can add to your portfolio today.

Here are the details…

This Is the Next Solar Stock Poised to Break Out

Today’s pick is JinkoSolar Holding Co. Ltd. (NYSE: JKS).

Shares of Jinko have gained more than 70% since the beginning of the year.

One might think, how can the VQScore recommend a stock that has moved so far in such a short period of time?

Investors often make the mistake of thinking that a stock that’s already up can’t keep the momentum going.

That kind of thinking will have you eking out puny returns just like the rest of the passive investor crowd.

With the industry poised to double solar installations in the U.S. alone, Jinko has more room to run.

The key is to stick to the fundamentals.

In the case of Jinko, those fundamentals are screaming “Buy”. And the stock’s recent gains have done little to change those fundamentals.

Analysts expect Jinko to grow profits this year by 17%.

At current prices, with a near 100% appreciation in five months of trading, Jinko trades for only 11 times earnings.

That’s several points below where the average S&P 500 stock trades.

Combine the low valuation with industry growth and you have a stock that could easily double in value from here.

If it’s reasonable to assume that solar installations double from here over the next few years, it is reasonable to assume that Jinko earnings of $1.62 in 2018 will double as well.

Let’s just say Jinko hits $3 of earnings in a few years.

Put a 20 multiple on that number – quite modest given the explosive growth that is coming – and you have a stock trading for $60 per share.

That would result in a gain of more than 200% for investors in Jinko today.

None of that outcome is dependent on trade or any other outside factors.

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