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Two Real Estate Stocks Flashing Overbought Warning Signs

MarketDash Editorial Team
1 day ago
LXP Industrial Trust and Alexander & Baldwin are showing elevated RSI readings above 70, suggesting these momentum darlings might be due for a pullback after strong recent runs.

If you're the type of investor who watches momentum indicators like a hawk, two real estate stocks might deserve a closer look right now. As of December 22, 2025, both are flashing warning signs that suggest their recent rallies could be running out of steam.

The tool in question here is the Relative Strength Index, or RSI, which measures a stock's strength on up days versus down days. Think of it as a momentum thermometer. When the reading climbs above 70, conventional wisdom says the stock is overbought and potentially vulnerable to a pullback. It's not a crystal ball, but it can give traders a heads-up about when enthusiasm might be getting ahead of fundamentals.

LXP Industrial Trust (LXP)

LXP Industrial Trust is currently sporting an RSI of 74.1, putting it squarely in overbought territory. The stock has climbed around 7% over the past month and recently hit a 52-week high of $52.52.

The momentum isn't exactly mysterious. Back on October 30, LXP posted third-quarter earnings that met expectations, but the real story was a strategic asset sale that caught investors' attention. Chairman and CEO T. Wilson Eglin highlighted the sale of two vacant development projects in Central Florida and Indianapolis to a user buyer for a gross price of $175 million. That represented a 20% premium over the properties' book value and delivered roughly 6% earnings accretion while pushing leverage down to 5.2x net debt to Adjusted EBITDA.

"We are pleased with our third quarter results, highlighted by the sale of our two vacant development projects in the Central Florida and Indianapolis markets to a user buyer," Eglin said. "The transaction was an excellent outcome for the company and follows our success leasing the one million square foot Greenville/Spartanburg development project in the second quarter, leading to increased occupancy of approximately 97% at quarter-end."

On Friday, shares of LXP rose 1.1% to close at $50.67. The stock also carries a momentum score of 70.29 and a value score of 51.79.

Alexander & Baldwin Inc (ALEX)

Alexander & Baldwin is showing an RSI of 73.8 after an even more dramatic run. The stock has surged approximately 33% over the past month, reaching a 52-week high of $21.03.

The catalyst here was major corporate news. On December 8, Alexander & Baldwin announced it would go private in a $2.3 billion all-cash transaction. For a company with 155 years of history in Hawaii, it's a significant strategic shift.

"For 155 years, A&B has grown alongside Hawaiʻi, shaped by the people, values and communities that define these islands," said Lance Parker, President and CEO of A&B. "Today, we are taking an important step toward our long-term vision for A&B as stewards of Hawai'i's premier commercial real estate. As a private company supported by the deep real estate expertise and experience of our new ownership group, A&B will have greater capacity to serve its tenants and communities."

Parker emphasized that the company would continue focusing on real estate supporting Hawaii residents' daily lives while maintaining its community partnership role. On Friday, Alexander & Baldwin shares gained 0.3% to close at $20.64.

So what does this all mean? Both stocks have had legitimate reasons for their recent strength—solid operational performance for LXP, a buyout premium for Alexander & Baldwin. But elevated RSI readings suggest the easy money might already be made. For momentum traders, these could be names to watch carefully rather than chase higher. Sometimes the best trade is knowing when to step aside.

Back to Stock Market News

Two Real Estate Stocks Flashing Overbought Warning Signs

MarketDash Editorial Team
1 day ago
LXP Industrial Trust and Alexander & Baldwin are showing elevated RSI readings above 70, suggesting these momentum darlings might be due for a pullback after strong recent runs.

If you're the type of investor who watches momentum indicators like a hawk, two real estate stocks might deserve a closer look right now. As of December 22, 2025, both are flashing warning signs that suggest their recent rallies could be running out of steam.

The tool in question here is the Relative Strength Index, or RSI, which measures a stock's strength on up days versus down days. Think of it as a momentum thermometer. When the reading climbs above 70, conventional wisdom says the stock is overbought and potentially vulnerable to a pullback. It's not a crystal ball, but it can give traders a heads-up about when enthusiasm might be getting ahead of fundamentals.

LXP Industrial Trust (LXP)

LXP Industrial Trust is currently sporting an RSI of 74.1, putting it squarely in overbought territory. The stock has climbed around 7% over the past month and recently hit a 52-week high of $52.52.

The momentum isn't exactly mysterious. Back on October 30, LXP posted third-quarter earnings that met expectations, but the real story was a strategic asset sale that caught investors' attention. Chairman and CEO T. Wilson Eglin highlighted the sale of two vacant development projects in Central Florida and Indianapolis to a user buyer for a gross price of $175 million. That represented a 20% premium over the properties' book value and delivered roughly 6% earnings accretion while pushing leverage down to 5.2x net debt to Adjusted EBITDA.

"We are pleased with our third quarter results, highlighted by the sale of our two vacant development projects in the Central Florida and Indianapolis markets to a user buyer," Eglin said. "The transaction was an excellent outcome for the company and follows our success leasing the one million square foot Greenville/Spartanburg development project in the second quarter, leading to increased occupancy of approximately 97% at quarter-end."

On Friday, shares of LXP rose 1.1% to close at $50.67. The stock also carries a momentum score of 70.29 and a value score of 51.79.

Alexander & Baldwin Inc (ALEX)

Alexander & Baldwin is showing an RSI of 73.8 after an even more dramatic run. The stock has surged approximately 33% over the past month, reaching a 52-week high of $21.03.

The catalyst here was major corporate news. On December 8, Alexander & Baldwin announced it would go private in a $2.3 billion all-cash transaction. For a company with 155 years of history in Hawaii, it's a significant strategic shift.

"For 155 years, A&B has grown alongside Hawaiʻi, shaped by the people, values and communities that define these islands," said Lance Parker, President and CEO of A&B. "Today, we are taking an important step toward our long-term vision for A&B as stewards of Hawai'i's premier commercial real estate. As a private company supported by the deep real estate expertise and experience of our new ownership group, A&B will have greater capacity to serve its tenants and communities."

Parker emphasized that the company would continue focusing on real estate supporting Hawaii residents' daily lives while maintaining its community partnership role. On Friday, Alexander & Baldwin shares gained 0.3% to close at $20.64.

So what does this all mean? Both stocks have had legitimate reasons for their recent strength—solid operational performance for LXP, a buyout premium for Alexander & Baldwin. But elevated RSI readings suggest the easy money might already be made. For momentum traders, these could be names to watch carefully rather than chase higher. Sometimes the best trade is knowing when to step aside.