Real Estate strength status as of 2023-05-11?

Brian Degracia

12 May 2023 • 2 min read

Though still "Weaker" Real Estate strengthened over the past week. Diversified/Industrial and Residential REITs have both strengthened for the past two weeks.

Following up the previous Real Estate-focused post, the current reading shows Real Estate is "Weaker" and strengthened over the past week. There are 14 stocks rated "Strongest" and 108 rated "Weakest." This is an improvement over the previous week's ratio of 13:128, which itself was a slight improvement over the previous week 4/20-4/27 ratio of 6:131.

A Philosophical Digression

Important: I make no predictions. I have no idea if this strengthening will continue. However, as mentioned in my second Banking post from yesterday:

You don't get to a two-month rally without going first through a one-week rally.

This is a ludicrously obvious statement I know. But as I have found in more than two decades of closely following the market, this is not how most people think. Thus, they aren't focusing on and measuring the same metrics as I am: strength and weakness, at the stock, sub-industry, industry, sector, and market levels. Because of this, many are not deploying information that could improve their performance.

If not heeding strengthening and weakening at the stock, sub-industry, industry, sector, and market levels, market participants are not deploying information that could improve their performance.

Five Strengthening Real Estate Sub-industries

Building on the strength of the previous week when four sub-industries strengthened there were five such sub-industries this past week. Residential and Diversified/Industrial REITs have both strengthened for the past two weeks.

The following directly compares the sub-industries:

The overall weakness is clear. All sub-industries are toward the Lower Strength portion of the scale. The weakest (Office REITs) strengthened last week but was unchanged this week.

For the record, here are the 14 strongest stocks, followed by a graphic showing the strongest and weakest stocks:

Property Management/Development
Redfin Corporation/RDFN
The Saint Joe Co/JOE
Forestar Group Inc./FOR
Maui Land & Pineapple Co/MLP
Zillow Group Inc/Z

REIT - Diversified/Industrial
Life Storage Inc/LSI
Stag Industrial Inc/STAG
First Industrial Realty Trust Inc./FR
Eastgroup Properties Inc/EGP

REIT – Hotel
Ryman Hospitality Properties Inc./RHP

REIT – Residential
Century Communities Inc/CCS
LGI Homes Inc/LGIH
Veris Residential Inc/VRE

REIT – Retail
Tanger Factory Outlet Centers Inc/SKT

Strongest and Weakest Stocks Detail

Though strengthening over the past week, the ocean of red belies that Real Estate is still "Weaker" overall.

Downloadable File

This analysis printout is downloadable at the following link:

SMO Real Estate 2023 05 11

SMO Real Estate 2023-05-11.pdf

2 MB

A Philosophical Digression

Five Strengthening Real Estate Sub-industries

Strongest and Weakest Stocks Detail

Downloadable File

Sign up for more like this.