Top 4 Real Estate Stocks That May Implode This Month

The most overbought stocks in the real estate sector presents an opportunity to go short on these overvalued companies.

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.

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

Five Point Holdings, LLC FPH

• Five Point Holdings posted a profit for the second quarter. Dan Hedigan, Chief Executive Officer, said, "During the second quarter, we were able to execute effectively on our three main priorities (generating revenue, rightsizing SG&A, and managing capital spend) and to achieve results that exceeded our expectations." The company’s stock has a 52-week high of $4.50. .
• RSI Value: 71.29
• FPH Price Action: Shares of Five Point Holdings fell 2.9% to close at $3.40 on Thursday.

Vornado Realty Trust VNO

• Vornado Realty Trust said it has entered into an agreement to sell four Manhattan retail properties located at 510 Fifth Avenue, 148 – 150 Spring Street, 443 Broadway and 692 Broadway and that it has sold The Armory Show in New York for a combined sales price of $124.4 million. The company’s stock has a 52-week high of $30.90.
• RSI Value: 71.64
• VNO Price Action: Shares of Vornado Realty Trust fell 1.9% to close at $21.42 on Thursday.

Forestar Group Inc. FOR

• Forestar Group posted upbeat third-quarter results. Daniel Bartok, CEO, said, "Builder incentives have helped bridge the affordability gap for many new homebuyers, and the supply of both new and existing homes remains limited. As a result, builder sentiment has improved, and housing starts have increased. Stronger demand for finished residential lots helped to drive solid third quarter results, highlighted by net income increasing 18% to $46.8 million or $0.93 per diluted share." The company has a 52-week high of $29.95.
• RSI Value: 88.20
• FOR Price Action: Shares of Forestar Group fell 0.3% to close at $29.10 on Thursday.

Comstock Holding Companies, Inc. CHCI

• Comstock Holding posted a decline in quarterly EPS. "Once again, Comstock’s results for the first quarter demonstrate the resiliency of our asset-light and virtually debt-free business model, while the quality of our mixed-use and transit-oriented portfolio of managed assets continues to deliver revenue and Adjusted EBITDA growth," said Christopher Clemente, Comstock’s Chairman and Chief Executive Officer. The company’s 52-week high is $6.94.
• RSI Value: 72.66
• CHCI Price Action: Shares of Comstock Holding rose 1.5% to close at $4.88 on Thursday.

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