As of Feb. 11, 2025, 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.
Zillow Group Inc ZG
- On Feb. 5, Benchmark analyst Daniel Kurnos maintained Zillow with a Buy and raised the price target from $80 to $100. The company's stock gained around 25% over the past month and has a 52-week high of $85.89.
- RSI Value: 75
- ZG Price Action: Shares of Zillow gained 1% to close at $85.29 on Monday.
Welltower Inc WELL
- On Jan. 29, NorthStar Healthcare Income, Inc. agreed to be acquired by an affiliate of Welltower for $3.03 per share in a $900 million transaction. Nikhil Chaudhri, Co-President and Chief Investment Officer of Welltower said, “We are delighted to have reached an agreement to acquire NorthStar’s portfolio of 40 seniors housing communities, which portfolio, subject to satisfaction of closing conditions and closing under the merger agreement, Welltower anticipates will be allocated to an entity affiliated with its recently announced funds management business." The company's stock gained around 14% over the past month and has a 52-week high of $143.84.
- RSI Value: 70.8
- WELL Price Action: Shares of Welltower gained 0.4% to close at $143.11 on Monday.
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