Late Tuesday night, Congress voted to extend federal subsidies for renewable energy.The tax credits were set to decline significantly for the solar subsidy by the end of next year, but U.S. lawmakers extended the credits through 2019.This applies to commercial installations, and home solar kits.After 2019, the credit will decline from 30% of the price of a solar array all the way down to 10% in 2022.According to the Solar Energy Industries Association, this move by Congress could add up to 140,000 jobs to the sector.Due to this move by Congress, JA Solar Holdings (JASO – Analyst Report) is the Zacks Bull of the Day.

This Zacks Ranked #1 (Strong Buy) is a fast growing manufacturer of high-performance solar cells that is advancing solar photovoltaics as a financially viable yet sustainable solution to balance the world’s environment and energy needs. The Company sells its products to solar module manufacturers who assemble and integrate its solar cells into modules and systems that convert sunlight into electricity.

In their most recent quarter, the company posted exceptional year over year results; Operating profit up +57.8%, Net Income rose +66.4%, Earnings per diluted share improved +73.3%, Net Revenues were up 26.4%, shipments of modules and module tooling rose 54.8%, and total shipments increased 43.5%.  

According to Mr. Baofang Jin, CEO, “We are pleased to report strong financial results for the third quarter of 2015 as total shipments of 1.1 GW exceeded the high end of our previous expectations. Strong demand in China continued to drive shipment growth, as China represented 53% of our total shipments during the quarter. We also made great progress on our new cell manufacturing facility in Malaysia during the quarter, and are very excited to have announced the facility’s launch in late October.”

As you can see from the Price and Consensus graph below, expectations going into 2016 elevated. 

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