Top 2 Real Estate Stocks That May Fall Off A Cliff

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.

LuxUrban Hotels Inc. LUXH

• LuxUrban Hotels posted better-than-expected sales for its second quarter. LuxUrban President and CFO stated, “Less than one year after completing our initial public offering, we have transformed our financial profile by eliminating the entirety of the approximately $9.8 million of senior secured debt held by our pre-IPO lenders and an estimated $87.5 million in future Revenue Share payments, all while pursuing a focused, high-conviction commitment to growth and profitability.” The company’s stock has a 52-week high of $5.78. .
• RSI Value: 82.73
• LUXH Price Action: Shares of LuxUrban Hotels gained 4.3% to close at $5.60 on Friday.

Hersha Hospitality Trust HT

• Hersha Hospitality Trust recently announced a merger with KSL Capital Partners LLC, an investor in travel and leisure businesses. "Following a multi-year comprehensive review by the independent Transaction Committee of Hersha's Board of Trustees, the Board and management team are confident this step will allow us to deliver value for our shareholders while refocusing on growing the business over a longer period of time," said Executive Chairman Jay H. Shah. The company’s stock has a 52-week high of $10.31.
• RSI Value: 80.81
• HT Price Action: Shares of Hersha Hospitality Trust gained 0.1% to close at $9.88 on Friday.

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