T
he real estate sector's most undervalued stocks present a buying opportunity, with companies trading at significantly lower prices than their peers.
To identify these opportunities, traders can use the Relative Strength Index (RSI), a momentum indicator that compares a stock's gains to its losses. When the RSI falls below 30, an asset is considered oversold and may be due for a rebound. According to Benzinga Pro, this threshold indicates potential short-term price action.
Here are three major real estate stocks with RSIs near or below 30:
Armada Hoffler Properties Inc (AHH) has seen its stock fall around 12% over the past five days, reaching a 52-week low of $9.81. Despite this decline, AHH's RSI value remains at 29.97.
La Rosa Holdings (LRHC) announced an amendment to restructure debt and repay $200,000 to a noteholder. The company's stock has fallen around 36% over the past month, but its RSI value is still near oversold levels at 29.83.
Creative Media & Community Trust Corp (CMCT) posted better-than-expected quarterly results in August, but its shares have since declined by 63%. With an RSI value of 14.80, CMCT's stock may be due for a rebound.
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