Top 2 Real Estate Stocks That Are Ticking Portfolio Bombs

As of Aug 20, 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.

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

Compass Inc COMP

• On July 31, the company said revenue in the second quarter increased by 14% year-over-year to $1.7 billion. “In light of a quarter where the real estate market saw historically low volume, I am particularly pleased that we achieved all-time high net income, all-time high Adjusted EBITDA, and generated positive free cash flow for the quarter, making the Company free cash flow positive in 4 of the last 5 quarters,” said Robert Reffkin, Founder and Chief Executive Officer of Compass. The company's stock gained around 17% over the past five days and has a 52-week high of $4.92.
• RSI Value: 70.70                              
• COMP Price Action: Shares of Compass gained 4% to close at $4.89 on Monday.

Realty Income Corp O

• On Aug. 19, Realty Income priced $500 million offering of senior notes due 2054. The company's stock gained around 6% over the past month and has a 52-week high of $61.60.
• RSI Value: 71.84
• O Price Action: Shares of Realty Income gained 1.4% to close at $60.86 on Monday.

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