3 Real Estate Stocks Flash Strong Momentum Signals As Fed Is Expected To Cut Rates

As the Federal Reserve approaches a possible interest rate cut, several real estate stocks have shown exceptional momentum shifts, propelling them into the top 10% percentile bracket among their peers.

This surge in momentum highlights renewed investor confidence in property development, office real estate, and home buying platforms, all of which stand to benefit from lower borrowing costs.

Real Estate Sector Rallies On Fed Rate Cut Hopes

Three real estate companies, Alset Inc. AEI, Offerpad Solutions Inc. OPAD, and Paramount Group Inc. PGRE, have surged near the top decile of market momentum as investors anticipate a potential rate reduction from the Federal Reserve.

This move historically benefits the property sector by lowering borrowing costs and spurring demand for commercial and residential spaces.

Alset

• AEI, a developer in the real estate sector, experienced a remarkable jump in its momentum percentile ranking, from 80.69 last week to the 95.75th percentile this week, marking a week-on-week change of 15.06 percentage points.

• The stock has gained 46.38% year-to-date and 112.63% over a year.

• It maintains a stronger price trend over the short, medium, and long terms with a weak growth ranking. Additional performance details are available here.

See Also: These 4 Precious Metals Stocks Outshine As Gold Rallies

Offerpad Solutions

• OPAD, a digital real estate platform specializing in home buying and selling, climbed from a momentum score of 76.97 to the 92.14th percentile, representing a robust 15.17 percentage point gain week-on-week.

• Higher by 57.09% in the YTD, the stock was up 15.66% over the year.

• This stock has a stronger price trend over the long, short, and medium terms. Additional performance details are available here.

Paramount Group

• PGRE, which operates primarily in office REITs, moved its momentum ranking from 88.37 to the 89.75th percentile, a more modest but still notable increase of 1.38 points week-over-week.

• The stock advanced 45.97% YTD and 50.21% over the year.

• With a moderate value ranking, it had a strong price trend in the short, medium, and long terms. Additional performance details are available here.

What Does The Momentum Ranking Entail?

These week-on-week percentile changes are calculated directly from Benzinga Edge Stock Ranking‘s momentum ranking scores, which analyze price movements and volatility relative to the broader equity universe.

FOMC Meeting Expectations For September

The CME Group’s FedWatch tool‘s projections show markets pricing a 100% likelihood of the Federal Reserve cutting the current interest rates for the Sept. 17 decision.

Investors are now watching these real estate names for sustained performance and sector leadership as macroeconomic conditions evolve.

Price Action

The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose on Tuesday. The SPY was up 0.23% at $650.33, while the QQQ advanced 0.28% to $580.51, according to Benzinga Pro data.

On Tuesday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading mixed.

Read Next

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzing

Photo courtesy: Worawee Meepian/Shutterstock