Top Stock Picks for Week of December 26, 2022

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JinkoSolar Holding Co., Ltd. JKS is a solar product manufacturer with operations based in Jiangxi Province and Zhejiang Province in China.JinkoSolar is one of the largest solar panel manufacturers on the planet and it stands to benefit from the massive expansion of renewable and alternative energy in the U.S. and beyond. The solar giant’s earnings outlook for next year has soared since its Q3 release in late October. The Chinese solar firm's global module shipments doubled year-over-year in Q3. The company is also successfully boosting both its production efficiency and rolling our more efficient panels, which are both crucial to the long-term growth of the industry. JinkoSolar’s profitability improved sequentially in Q3. Analysts raced to boost their FY23 estimates following its Q3 release, which is no easy task amid the current economic environment.  Investors might want to consider adding exposure to at least a few solar stocks. JinkoSolar offers investors the chance to do just that through its ADR shares which are trading at a big discount to their highs. Plus, JKS currently presents an excellent mixture of near-term and long-term growth, coupled with impressive value.

Caterpillar CAT, known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer. Caterpillar’s revenues and earnings has grown year over year for seven straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of the supply chain snarls and cost pressures. Caterpillar has seen its near-term earnings outlook improve over the last several months, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy). We expect the company’s adjusted earnings per share for 2022 to grow 29.2% and revenues are predicted to rise 13.5%. The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment. Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.

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