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s of January 27, 2025, several real estate stocks are flashing warning signs to momentum-driven investors. The Relative Strength Index (RSI) is a key indicator that compares a stock's upward and downward price movements. When the RSI exceeds 70, it typically signals an asset is overbought.
Here are three major players in the sector that may be due for a correction:
Terreno Realty Corp (TRNO) has seen its stock surge around 10% in the past month, reaching a 52-week high of $71.63. The RSI value stands at 74, indicating it's overbought. TRNO shares gained 0.5% to close at $64.99 on Friday.
Welltower Inc (WELL) has also seen significant gains, rising around 9% in the past month and reaching a 52-week high of $140.75. The RSI value is 72.9, suggesting it's overbought. WELL shares gained 3.4% to close at $136.75 on Friday.
Medical Properties Trust Inc (MPW) has experienced a 26% increase in the past month, reaching a 52-week high of $6.55. The RSI value is 71.2, indicating it's overbought. MPW shares gained 2.6% to close at $4.69 on Friday.
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