Analyst Urges Blind Investment in Utilities Stocks
The recent selloff in the utilities sector due to rising interest rates has created attractive buying opportunities for investors, according to KeyBanc Capital analyst Sophie Karp. Karp raised her rating on several utility stocks and reiterated her bullish call on others, citing significant valuation dislocations. The Utilities Select Sector SPDR ETF has slumped over 16% since July, while the yield on the 10-year Treasury note has reached its highest level since 2007. Karp advises investors to focus on higher quality names with historically low valuations in the utilities sector.