Top 3 Real Estate Stocks That May Crash In Q3

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.

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’s stock has a 52-week high of $31.43. .
• RSI Value: 77.37
• FOR Price Action: Shares of Forestar Group fell 1.8% to close at $30.38 on Thursday.

The St. Joe Company JOE

• St. Joe Company reported a year-over-year increase in second-quarter EPS and sales. Jorge Gonzalez, the Company’s President and Chief Executive Officer, said, “We showed solid organic growth in the quarter across each of our segments without any unique one-time events.” The company’s stock has a 52-week high of $65.99.
• RSI Value: 71.77
• JOE Price Action: Shares of St. Joe Company fell 0.7% to close at $62.42 on Thursday.

Tanger Factory Outlet Centers, Inc. SKT

• Tanger Factory Outlet posted better-than-expected quarterly sales. "We are pleased to announce another quarter of strong results that demonstrate the continued execution of our strategic plan to elevate and diversify our tenant mix, drive total rents, and leverage our platform to realize additional growth," said Stephen Yalof, President and Chief Executive Officer. The company has a 52-week high of $25.23.
• RSI Value: 72.90
• SKT Price Action: Shares of Tanger Factory Outlet Centers fell 0.2% to close at $24.80 on Thursday.

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