The rising price levels for WTI and Brent crude oil, along with U.S. 10-year Treasury yields at 5.23%, pressured various stocks. The steady sell-off created a steep discount for investors.
In the REIT sector, Realty Income (O) closed at $55.35, a price not seen since 2025. Despite steadily raising its dividend, its yield of 5.87% does not offer income investors enough premium over the 10-Year T-bill.
Realty Income stock trades at a discount. It has an attractive EV/EBITDA and price/book ratio. The firm’s peers include W.P. Carey (WPC) and NNN REIT (NNN).
First Solar (FSLR), along with Enphase (ENPH), is trading at a paper loss for investors YTD. The firm closed at a 52-week low despite analysts from BMO and KeyBanc raising their rating on FSLR stock in the last two months. High bond yields raise borrowing costs. Investors are worried that the solar energy industry, which depends greatly on project financing, will face higher lending costs.
First Solar has a healthy backlog.
In the utilities sector, watch The Southern Company (SO). The stock traded at a 52-week low after falling steadily from July. Again, high bond yields lower the attractiveness of utility firms. SO stock is attractive for its strong profitability and positive analyst EPS revisions.
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