(This is “The Best Stocks in the Market,” brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh — I’m old enough to remember when people were bullish on Prologis (PLD) around 2021 because of its reputation as an “e-commerce powerhouse.” At the time, I was trading stocks for this very reason. When Amazon and all the other retailers needed warehouse space close to consumers, Prologis had the location, scale, and relationships. That story hasn’t gone away, but a new one is running in parallel. The company is currently aggressively moving into data centers, using both existing warehouse renovations and greenfield developments, and has publicly stated its ambitions to expand data center capacity by up to 10 gigawatts over the next 10 years. As suppliers move their distribution centers closer to data center development, Prologis’ forward-looking pipeline is increasingly comprised of corporate customers involved in data center construction in the United States. The world’s largest industrial REIT is quietly becoming a digital infrastructure company, with most investors still listing it as an “e-commerce warehouse.” The benefit of researching the best stocks in the market is that it forces you to ask yourself why stocks in the “wrong” sector are among the market leaders, when most people just hear the name and ticker and revert to their previous biases. “Oh, Prologis, that’s the e-commerce REIT I’ve been hearing a lot about during coronavirus.” Think again, fat boy. A new era, a new basic driving force. Sean explains why Prologis and another REIT that everyone thinks they understand, Simon Property Group (SPG), have performed well this year despite everyone’s concerns about rising interest rates. This is well understood to be a negative factor for most sectors. We’ll also bring you the usual Monday morning high-level stats from the rest of the list. This is a personal matter, but thank you for your understanding regarding my absence last week. I promised my wife I would take a laptop-free vacation, but the editor at CNBC Pro let me work for a few columns so I could keep our marriage going. I know you missed us. We missed you too. But now we’re back with a vengeance. Let’s do it. As of June 8, there are 184 names on “The Best Stocks in the Market” list. Top Sector Rankings: Top Industries: Top 5 Blue Chip Stocks by Relative Strength: Sectors to Watch: Real Estate Prologis, Inc. (PLD) Sean — Friday was a strange day for the markets. In addition to the unwinding of the clear AI winner trade, interest rates also rose in response to better-than-expected labor data. The market confirmed (and continues to confirm) what we have all thought. Barring some disaster, there will be no rate cuts this year, and probably not in the near future. Most people would think that if interest rates didn’t go down, or worse, if they went up, real estate would suffer even more. Historically, that’s what usually happens. This is the real estate sector spider in the top pane and the 10-year yield in the bottom pane. In most cases, they are mirror images until we look at 2026, when both prices and yields will rise. That’s exactly what happened last Friday. Yields rose 12 basis points (not a small move) and real estate rose 1%, finishing as one of three green sectors. In response, we wanted to get into the unpopular real estate sector and see what’s trending. First up is Prologis (PLD). I wrote about this name in February. Prologis is the world’s largest industrial REIT, owning and operating approximately 758 million square feet of logistics and distribution facilities. The interest rate-sensitive nature of industrial REITs hurt PLD hard in 2022 (-31.32%) and 2024 (-18.11%), but year-to-date in 2026, PLD is up a respectable 14%, including a 3% dividend yield. Looking at the fundamentals, Q1 2026 was a strong quarter overall. Total revenue was $2.3 billion (up from $2.14 billion a year ago), net income was up 66% to $980 million, and core FFO per share (think of it like EPS for a REIT) increased from $1.42 to $1.50. Comparable store NOI increased by 6.1% and occupancy rate was 95.3%. The company signed a record 64 million square foot lease and launched $2.1 billion in new development, including $1.3 billion in data centers. Prologis raised its full-year 2026 outlook, raising development expectations to $4.5 billion to $5.5 billion, with about 40% of that allocated to data centers. Josh — Prologis (PLD) has been on a steady upward trend since bottoming out around $105 in the summer of 2025. The company’s evolution into a data center landlord now appears to be better understood. It’s consistent with other AI themes. The stock broke out in November, rising to $148 before settling into a multi-month range just below that level. This sideways movement has allowed the 50-day moving average to catch up with the price, which is now at $140, just below $144. The next technical event to watch is a clean break and exit above $148. This would represent a breakout from its consolidation and open the door to even greater heights. The RSI is 55, which is approximately a neutral value. There are no strong tailwinds here yet. This is a stock that has finished consolidating and may be poised for its next move. For traders, the stop would be below 50 days in the $138-$140 area, but I wouldn’t do that. I prefer investing to trading. Instead, consider giving yourself more wiggle room and consider looking at $129/200 days as a dividing line. However, that level is far enough away that retesting there would require a reassessment of the entire trend. Back in March, when everyone was worried about war with Iran, $129 was in aid. I’d be willing to bet that we’ll find buyers above that level again. Simon Property Group, Inc. (SPG) Sean — Simon is a completely different REIT than PLD. Simon Property Group is the largest retail REIT in the United States, owning and operating 212 domestic and 42 international properties. Its size and rarity of quality retail real estate create a durable moat, with no single tenant accounting for more than 5% of consolidated revenue. Simon delivered strong results in the first quarter of 2026. Real estate FFO increased 7.5% to $3.17 per share. U.S. mall and premium outlet occupancy reached 96.0% and retailer sales per square foot reached $819, an impressive 11.8% increase year over year. The company signed more than 1,100 leases covering 4.7 million square feet and increased its quarterly dividend by 7.1% to $2.25 per share, yielding 4.4%. The full-year 2026 outlook has also been raised, with real estate FFO of $13.10 to $13.25 per share (about 5% growth at the midpoint), with management expecting all capital to be funded from internally generated cash flow. Josh – Simon Property Group (SPG) just hit an all-time high on Friday. That’s where it begins. Think about how many market players hear, “Simon, oh, that’s a shopping mall, I’m not interested in that stuff.” It’s been growing at a rate of 32% per year since the pandemic, but what do they know?The company’s stock was on a steady uptrend in the second half of 2025, but it took a big hit in February when everything went down on the Iran War selloff, finding its rightful footing in the 200-day moving average around $180. Buyers showed up and the stock reversed, regaining 50 days and hitting a new high of $210. Buyers had to enter at $180 to protect the uptrend, which they did. textbook. That’s all in one sentence. The decline has held exactly where it should and prices are now entering new territory. The RSI is at 64, confirming the momentum without any overbought warning signs. This is a stock with the wind at your back and plenty of headroom. Investors’ stops are fixed at the February lows held by 200 days at around $180. If SPG returns below $180, we will need to reconsider our theory. Disclosure: (none) All opinions expressed by CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, its parent or affiliates, and may have been previously disseminated on television, radio, the Internet, or another medium. This content is provided for informational purposes only and does not constitute financial, investment, tax, or legal advice or a recommendation to purchase any securities or other financial assets. The Content is general in nature and does not reflect any individual’s unique personal circumstances. The above may not be appropriate for your particular situation. Before making any financial decisions, you should strongly consider seeking the advice of your own financial or investment advisor. Investments involve risk. The analysis examples included in this article are examples only. The views and opinions expressed are those of the contributors and do not necessarily reflect the official policy or position of Ritholtz Wealth Management, LLC. Josh Brown is the Chief Executive Officer of Riholtz Wealth Management and may maintain securities positions in the securities discussed. The assumptions made within the analysis do not reflect the position of RITHOLTZ WEALTH MANAGEMENT, LLC until the end of the disclosure. Click here for full disclaimer.
