Over the past four quarters, STP has been able to beat analysts’ earnings estimates by an average of 100%. If history repeats itself, both STP and TAN may be in for a good run, assuming the broader market doesn’t sell-off dramatically. [Nuclear ETFs Waiting to Exhale.]
One point of caution on solar funds: eurozone companies compose 30% of TAN. Considering the economic issues in that region, it seems unlikely that the cost structure of solar energy will improve any time soon. Market Vectors Solar Energy ETF (NYSEArca: KWT) has slightly exposure to the eurozone – Germany is 20%, while Norway, United Kingdom and Spain all account for smaller portions – but it’s still there. [Which ETFs Have Euro Exposure?]
While Europe sorts out its many issues, it may be worth sitting back and watching these funds until they make the all-important 200-day moving average crossover. [How to Follow Trends.]
- Market Vectors Solar Energy ETF (NYSEArca: KWT)
Sumin Kim contributed to this article.