The IBD Stock Of The Day is the exchange-traded fund Invesco Solar, which contains a bundle of stocks in the hot and getting hotter solar energy field. TAN stock is on the cusp of a buy point.
Solar stocks have gotten a boost by the massive green energy bill known as the Inflation Reduction Act. It was signed into law by President Biden in August. The legislation unlocks $370 billion for clean-energy incentives and consumer benefits.
TAN stock and other solar energy stocks already were getting a boost from international agreements to slash carbon emissions and lessen the impact of global warming.
Invesco Solar has formed a cup with handle with a buy point of 83.20. TAN stock surged past the buy point, up 2.8% to close at 83.76 on the stock market today. Shares trade above its 50-day moving average.
TAN Stock: Issues In Invesco's ETF
TAN stock is international in scope and includes companies in all areas of the solar economy from parts makers to panel manufacturers to battery storage suppliers. ETFs are a way to play solar with less volatility than one might experience with a single stock.
Stocks in the Invesco Solar ETF portfolio include First Solar, Enphase Energy, SolarEdge Technologies, and Sunrun.
Exchange traded funds trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units." The Invesco Solar ETF is based on the MAC Global Solar Energy Index .
Largest Alternative Energy Spend
The Inflation Reduction Act is the largest federal government spending increase on alternative energy in U.S. history. Further, its impact could last over the next decade, affecting TAN stock and other issues.
Also, economics are pushing renewables such as solar and wind energy to the fore, thanks to tax credits and cheaper equipment. According to the International Energy Agency, solar is now less expensive than natural gas and coal.
TAN stock has a Relative Strength Rating of 79 out of 99. Its Relative Strength line has accelerated near its September high since hitting lows in October.
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