Solar exchange traded funds are burning up as industry growth outshines expectations that a string of negative factors would weigh on solar stocks.
“The glare from the red hot TAN (Guggenheim Solar ETF) can be ignored no more,” Chris Hempstead, Director of ETF Execution Services at WallachBeth Capital, said in a note. “This product is up 50% since early April. This sector has been on a tear with names like FSLR and SPWR leading the way. Trading volume during this most recent run is up almost 35% compared to the YTD average volume.”
TAN includes a 18.7% allocation in FSLR and SPWR is 6.5%. KWT has 13.6% in FSLR and SPWR is 4.7%.
First Solar and SunPower have both been giving out better-than-expected guidance for the rest of the year, reports Donna Hwell for Investor’s Business Daily. SunPower guided a revenue of $2.5 billion to $2.6 billion with EPS of 60-80 cents, compared to analysts expectations of $2.54 billion in revenue and an EPS of 64.
SunPower also expects to double its 2012 installed customer base by 2015.