Top 2 real estate stocks that may crash this month

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As of September 13, 2024, two real estate stocks could send a stark warning to investors who value momentum as a key criterion in their trading decisions.

RSI is a momentum indicator, which compares a stock’s strength on days when prices rise to strength on days when prices fall. Compared to a stock’s price action, it can give traders better insight into how a stock may perform in the short term. An asset is usually considered overbought when the RSI is above 70, according to Benzinga Pro.

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

Medical Properties Trust Inc (NYSE:MPW)

On Sept. 11, Medical Properties Trust announced it had reached a global settlement that restored control of its real estate and severed its relationship with Steward Health Care. Shares of the company have gained about 25% in the past month and are at a 52-week high of $6.64.

RSI value: 71.59

MPW Price Action: Shares of Medical Properties Trust gained 16.2% to close at $5.60 on Thursday.

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American Healthcare REIT Inc (NYSE:AHR)

On August 5, American Healthcare posted better-than-expected quarterly earnings. “Our first year as a publicly traded company is off to a great start. The demand for healthcare real estate is evident in the performance of our portfolio. Growth in the first half of 2024 exceeds the expectations we set at the start of the year, which led to upward revisions to our same-store NOI growth guidance and NFFO guidance. As we plan for the balance of the year and into 2025, we expect that high levels of same-store NOI growth persist due to the supply-demand imbalance present in long-term care. said Danny Prosky, the company’s president and chief executive officer. Shares of the company have gained about 38% in the past month and have a 52-week high of $23.74.

The story continues

RSI value: 87.94

AHR Price Action: Shares of American Healthcare REIT gained 3.5% to close at $23.69 on Thursday.

Better returns than some REITs?

The current high interest rate environment has created an incredible opportunity for income investors to earn massive returns, but not through publicly traded REITs.

Arrived Homes, the investment platform backed by Jeff Bezos, has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target net annual return of 7% to 9% paid investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, it has a minimum investment of only $100.

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This article Top 2 Real Estate Stocks That May Collapse This Month originally appeared on Benzinga.com