Benzinga has released a list of the most overbought stocks in the real estate sector, offering an opportunity for investors to go short on these potentially overvalued companies. The overbought status of a stock is determined using the Relative Strength Index (RSI), which compares a stock’s strength on days when prices go up to its strength on days when prices go down. Generally, a stock is considered overbought when the RSI is above 70.
One of the stocks on the list is Hersha Hospitality Trust (HT). The company recently announced a merger with KSL Capital Partners LLC, focused on travel and leisure businesses. The merger is expected to deliver value to shareholders and facilitate long-term business growth. Currently, Hersha Hospitality Trust’s stock has a 52-week high of $10.31, and its RSI value is at 82.54. On Monday, the stock closed at $9.94, reflecting a 0.7% increase.
Another overbought stock mentioned is Sabra Health Care REIT, Inc. (SBRA). The company reported weaker-than-expected second-quarter sales. However, Sabra’s CEO, Rick Matros, remains positive about the company’s strengthening portfolio, with increasing occupancy rates and improved rent coverages. Additionally, encouraging reimbursement trends, including higher Medicaid rate increases, are expected to benefit the company. Sabra Health Care REIT’s stock currently has a 52-week high of $14.32, and its RSI value stands at 71.01. On Monday, the stock closed at $14.06, with a 0.9% gain.
Investors should carefully evaluate these overbought real estate stocks and consider shorting them based on their high RSI values. However, it is important to conduct thorough research and seek professional investment advice before making any investment decisions.