2 Real Estate Stocks Flashing 'Buy'

WPG could soon start squeezing shorts

Managing Editor
Aug 31, 2018 at 12:10 PM
facebook X logo linkedin

Shares of real estate investment trusts (REIT) Washington Prime Group Inc (NYSE:WPG) and Apartment Investment and Management Co (NYSE:AIV) have both been quietly climbing out of their early 2018 holes. There is reason to believe their recent rallies could resume, as both stocks recently flashed short-term bullish signals heading into the new month.

WPG Pullback Could Be Buying Opportunity

Looking at Washington Prime Group, the stock was furiously rallying off its mid-February lows of $5.40, peaking at $8.43 on July 6. Since then, the shares have pulled back, and are now trading around their 80-day moving average -- which could have bullish implications, if history is any guide.

Daily Stock Chart WPG

More specifically, WPG shares are now within one standard deviation of their 80-day moving average, after a lengthy stretch above this trendline. There have been four similar signals of this kind in the past three years, after which WPG went on to average a one-month gain of 6.3%, with three of those returns positive, per Schaeffer's Senior Quantitative Analyst Rocky White. At last check, the stock was up 0.9% to trade at $7.65. A similar rally from current levels would place the REIT stock back above the $8 level.

A short squeeze could also help drive the shares higher. Short interest increased by 11% in the most recent reporting period, to a record high 32.91 million shares. This represents nearly 18% of WPG's total available float, and more than 16 days of pent-up buying power. 

AIV Stock Eyes Longest Monthly Win Streak in 4 Years

As for AIV, the REIT stock is fractionally lower today at $43.73, despite heading toward a four-month winning streak -- its longest since 2014 . The shares have added 15% since their February bottom near $38, with their 50-day moving average containing pullbacks in June and July. While all of this amounts to the stock barely trading above its year-to-date breakeven, there is plenty to suggest the stock could keep climbing in September.

Daily Stock Chart AIV

To start, the real estate name is one of the best S&P 500 stocks to own ahead of the shortened Labor Day week. According to White, in the past 10 years, the equity boasts an average return of 2.1% during this holiday week, and was positive nine times -- the highest holiday-week win rate of the stocks covered. 

There is ample room for bullish analyst notes, should AIV keep climbing. Of the 12 brokerages covering the equity, eight rate it a tepid "hold." Furthermore, its consensus 12-month price target of $45.33 is only slightly above its current perch.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI