As of May 30, 2025, two stocks in the real estate sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.
Here's the latest list of major overbought players in this sector.
On May 1, Douglas Elliman reported better-than-expected first-quarter sales results. “Our performance in the first quarter highlights the strength of our luxury brand and the incredible efforts of our agents, employees and leadership team,” said Michael S. Liebowitz, Chief Executive Officer of Douglas Elliman Inc. “By focusing on high-impact areas like Development Marketing, we’re driving growth and reinforcing our position as the leader in the luxury market – delivering our highest first-quarter revenue since 2022 with significant reductions in operating losses.” The company's stock jumped around 76% over the past month and has a 52-week high of $3.20.
RSI Value: 79.4
DOUG Price Action: Shares of Douglas Elliman fell 1% to close at $2.92 on Thursday.
Edge Stock Ratings: 97.12 Momentum score with Value at 65.91.
On May 20, Evercore ISI Group analyst Steve Sakwa upgraded Paramount Group from In-Line to Outperform and raised the price target from $4.5 to $8. The company's stock gained around 42% over the past month and has a 52-week high of $6.34.
RSI Value: 78
PGRE Price Action: Shares of Paramount fell 2.6% to close at $6.09 on Thursday.
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