Benzinga - by Lisa Levin, Benzinga Editor.
As of Nov. 24, 2023, five stocks in the real estate sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.
Here’s the latest list of major overbought players in this sector.
Forestar Group Inc. (NYSE: FOR)
- Forestar Group reported better-than-expected fourth-quarter financial results. Daniel Bartok, CEO, said, "The Forestar team finished the year strong in the fourth quarter, highlighted by a 44% increase in pre-tax income to $95.4 million on revenues of $549.7 million, with a pre-tax profit margin of 17.4%." The company’s stock has a 52-week high of $32.70. .
- RSI Value: 75.05
- FOR Price Action: Shares of Forestar Group rose 2.3% to close at $32.46 on Wednesday.
- Newmark Group reported better-than-expected third-quarter results and issued strong guidance. The company’s stock has a 52-week high of $9.36.
- RSI Value: 71.46
- NMRK Price Action: Shares of Newmark Group gained 1.7% to close at $7.92 on Wednesday.
- The company said FFO, as adjusted, per share was $1.60 for the third quarter. "CBL posted solid results in the third quarter highlighted by same-center NOI growth of 40 basis points," said Stephen D. Lebovitz, CBL's chief executive officer. The company has a 52-week high of $31.02.
- RSI Value: 72.21
- CBL Price Action: Shares of CBL & Associates Properties rose 0.9% to close at $23.12 on Wednesday.
- Farmland Partners posted a loss for the third quarter. Luca Fabbri, President and Chief Executive Officer said, "Against a backdrop of global economic and geopolitical uncertainty, the US agriculture industry in general, and farmland as an asset class in particular, continue to offer stability to consumers and investors alike. We have been leveraging this stability by continuing to selectively prune our portfolio, with a focus on farms that are not long-term strategic fits for the portfolio." The company’s 52-week high is $13.65.
- RSI Value: 78.74
- FPI Price Action: Shares of Farmland Partners gained 0.5% to close at $12.43 on Wednesday.
- Spirit Realty reported better-than-expected third-quarter sales results. The company has a 52-week high of $44.65.
- RSI Value: 71.95
- SRC Price Action: Shares of Spirit Realty Capital fell 0.5% to close at $40.57 on Wednesday.
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