This article highlights the opportunity to short overvalued companies in the real estate sector. To identify these stocks, traders can use the Relative Strength Index (RSI), a momentum indicator that compares a stock’s strength on days when prices go up to its strength on days when prices go down. When the RSI is above 70, it indicates that an asset is overbought.
Among the major overbought players in the real estate sector are FLJ Group Limited (NASDAQ:FLJ), LuxUrban Hotels Inc. (NASDAQ:LUXH), Innovative Industrial Properties, Inc. (NYSE:IIPR), and Hersha Hospitality Trust (NYSE:HT).
FLJ Group is scheduled to hold its 2023 annual general meeting on September 18, 2023. The stock has a 52-week high of $4.06, and its RSI value is currently at 70.54. However, it is important to note that FLJ Group’s price action recently gained 12.4% to close at $0.2669 on Monday.
LuxUrban Hotels reported better-than-expected earnings and has a 52-week high of $3.84. The RSI value for LuxUrban Hotels is 77.27, indicating an overbought status. The stock price rose 6.1% to close at $3.65 on Monday.
Innovative Industrial Properties released its second-quarter results, revealing a total revenue of $76.5 million, an 8% increase compared to the previous year’s period. The stock has a 52-week high of $125.38, and its RSI currently stands at 71.89. Innovative Industrial Properties’ stock price gained 0.8% to close at $89.34 on Monday.
Hersha Hospitality Trust announced a merger with KSL Capital Partners LLC, an investor in travel and leisure businesses. With a 52-week high of $10.40, Hersha Hospitality Trust has an RSI value of 87.64, indicating a significantly overbought status. The stock closed at $9.84 on Monday.
In conclusion, traders looking for short-selling opportunities may consider these overbought stocks in the real estate sector. However, it is important to conduct further research and analysis before making any investment decisions.
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