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Starting September 13, 2024, two real estate stocks could send a real warning to investors who value momentum as a key criterion in their trading decisions.
The RSI is a momentum indicator that compares a stock’s strength on days when prices rise to its strength on days when prices fall. By comparing it to a stock’s price action, it can give traders a better idea of how a stock might perform in the short term. An asset is typically considered to be overbought when the RSI is above 70, according to Benzinga Pro.
Current trends:
Here is the latest list of the major overbought players in this sector.
Medical Properties Trust Inc. (NYSE:MPW)
On Sept. 11, Medical Properties Trust announced it had reached a global settlement agreement that restored control over its real estate and severed its relationship with Steward Health Care. The company’s shares have gained about 25% over the past month and hit a 52-week high of $6.64.
RSI Value: 71.59
MPW Price Action: Medical Properties Trust shares gained 16.2% to close at $5.60 on Thursday.
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American Healthcare REIT (NYSE:AHR)
On August 5, American Healthcare posted better-than-expected quarterly earnings. “Our first year as a public company is off to a great start. The demand for healthcare real estate is evident in the performance of our portfolio. Growth in the first half of 2024 is exceeding the expectations we set at the beginning of the year, prompting our upward revisions to same-store NOI growth guidance and NFFO guidance. As we plan for the remainder of the year and into 2025, we expect elevated levels of same-store NOI growth to persist due to the supply-demand imbalance present in long-term care,” said Danny Prosky, the company’s president and CEO. The company’s shares have gained about 38% over the past month and are at a 52-week high of $23.74.
RSI Value: 87.94
AHR Price Action: Shares of American Healthcare REIT gained 3.5% to close at $23.69 on Thursday.
Better returns than some REITs?
The current high interest rate environment has created an incredible opportunity for income-seeking investors to earn massive returns, but not through publicly traded REITs.
Jeff Bezos-backed investment platform Arrived Homes has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a net annual return target of between 7% and 9% paid to investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, this one has a minimum investment of just $100.
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This article Top 2 Real Estate Stocks That Could Crash This Month originally appeared on Benzinga.com