Daily Stock Pick: August 8th, 2022

Stocks inched higher this morning as markets geared up for another week of trading.  The focus will shift to inflation data in the coming days with the release of fresh readings for the Consumer Price Index and the Producer Price Index scheduled for later in the week.  Investors will look for clues about the central bank’s next move at its September policy meeting.

Clean energy stocks are catching a boost on the heels of the Senate’s approval of the Inflation Reduction Act, a $430 billion climate bill expected to be passed by the House this week.  The bill aims to reduce the budget deficit via tax reform while also investing in renewable energy.

Solar stocks have had a bumpy 2022 as supply chain disruptions, rising production costs, and labor shortages have hampered the industry.  However, the tides seem to be shifting as the headwinds subside.  Today we’ll cover an investment for our readers looking to cast a wide net and reap benefits from promising companies across stocks within the solar industry, which are rising across the board this morning.   

The Invesco Solar ETF (TAN) is still down 30% from its February 2021 high but has gained more than 10% in the past month, and the industry seems primed to build on this strong momentum.  

The Invesco Solar ETFis a great way to gain exposure to solar without investing in just one stock.  The fund seeks to track the MAC Global Solar Energy Index and is comprised of about 35 individual components — including both U.S. and international stocks.  The fund follows a blended strategy, investing in both value and growth stocks with various market caps.  

TAN’s share price peaked in mid-February 2021 before the entire industry took a beating. With many stocks from the subsector still down more than 50%, it could be an excellent opportunity to get in at a more attractive price as growth in the solar industry will likely gain strength in the long term.

ETFs, by their nature, are often considered a less risky investment as they tend to be much less volatile than individual stocks.  If you’re unsure about which solar stocks to buy and want to cut back on potential risk, TAN is a relatively safe way to add solar energy to your investment portfolio.    

Invesco Solar ETF (TAN)

  • Weighted Average Market Cap  $8.10B
  • Price / Earnings Ratio   44.39
  • Price / Book Ratio  2.32
  • YTD Return  8%
  • Yield  0.10%
  • Expense Ratio  0.66%
  • Net Assets   2.31B
  • Number of Holdings  147
  • Top Holdings  Enphase Energy, SolarEdge Technologies, Sunrun  

Where to invest $1,000 right now...

Before you consider buying TAN, you'll want to see this.

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And it's not TAN.

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Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.

Find that to be extraordinary?

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But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.

Click here to find out the name and ticker of Keith's #1 pick...