The real estate sector currently presents opportunities for investors looking to buy undervalued companies. A key indicator to identify such opportunities is the Relative Strength Index (RSI), a momentum indicator that measures a stock’s price strength on up days compared to down days. A stock with an RSI below 30 is generally considered oversold.
Altisource Asset Management Corp (AAMC)
Altisource Asset Management announced on August 26th its intention to voluntarily delist and deregister its common stock from the NYSE American LLC. This news led to a significant decline in the stock price, with a 50% drop over the past month. The current 52-week low stands at $1.10, and the RSI value is 27.19, suggesting an oversold condition.
On Thursday, shares of AAMC closed at $1.28, down 1.9%.
Wheeler Real Estate Investment Trust Inc (WHLR)
Wheeler Real Estate Investment Trust reported its financial and operating results for the three and six months ended June 30 on Form 10-Q on August 6th. Following this report, the company’s stock experienced a sharp decline, falling around 78% over the past month. The 52-week low for WHLR is $1.02, and its RSI value currently sits at 26.52, signaling a potential oversold scenario.
On Thursday, shares of WHLR closed at $1.17, down 15.2%.
While these oversold conditions could present potential investment opportunities, it’s important to conduct thorough research and consider other factors before making any investment decisions.
