Top 2 Real Estate Stocks That May Collapse This Month

As of Sept. 13, 2024, two 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.

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Here’s the latest list of major overbought players in this sector.

Medical Properties Trust Inc MPW

On Sept. 11, Medical Properties Trust announced it reached a global settlement agreement that restored its control over its real estate and severed its relationship with Steward Health Care. The company’s stock gained around 25% over the past month and has a 52-week high of $6.64.

RSI Value: 71.59                              

MPW Price Action: Shares of Medical Properties Trust gained 16.2% to close at $5.60 on Thursday.

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American Healthcare REIT Inc AHR

On Aug. 5, American Healthcare posted better-than-expected quarterly earnings. "Our first year as a listed company is off to a great start. Demand for healthcare real estate is evident in our portfolio performance. 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 balance of the year and into 2025, we expect the elevated levels of Same-Store NOI growth to persist due to the demand-supply imbalance present in long-term care," said Danny Prosky, the Company's President and Chief Executive Officer. The company’s stock gained around 38% over the past month and has 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 Yields Than Some REITs?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through publicly-traded REITs.

Arrived Homes, the Jeff Bezos-backed investment platform has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield 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 only $100. 

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