Investors focused on momentum-based strategies are encountering warning signs in the real estate sector as February 2026 begins. Two notable stocks, Peakstone Realty Trust (NYSE: PKST) and Veris Residential (NYSE: VRE), currently display elevated momentum indicators suggesting that price pullbacks could be imminent.
The relative strength index (RSI) serves as a common gauge of momentum by comparing the magnitude of recent gains to recent losses. Typically, an RSI value above 70 is taken as a signal that an asset may be overbought and prone to near-term declines. In this context, both PKST and VRE have surpassed this threshold, highlighting a cautionary environment for traders prioritizing momentum.
Peakstone Realty Trust’s Accelerated Developments
On February 2, 2026, Peakstone Realty Trust's board disclosed an all-cash acquisition offer from Brookfield totaling approximately $1.2 billion. CEO Michael Escalante expressed optimism about the transaction, emphasizing the value it delivers to Peakstone shareholders. He noted that, after careful evaluation aided by advisors, the board concluded that the offer represents the most favorable terms currently available. The deal also recognizes Peakstone's industrial property assets and the advancements in their Industrial Operating System (IOS) platform.
Following this announcement, Peakstone’s shares rallied significantly, reflecting investor enthusiasm. Over the previous month alone, the stock appreciated by roughly 51%, reaching a 52-week high of $20.85. As of the close on the last trading day referenced, the shares edged slightly higher by 0.1%, finishing at $20.75.
Despite this upward momentum, Peakstone’s RSI value stood at 91.3, well above the overbought benchmark. This indicates an intensified level of buying pressure that could lead to profit-taking or price corrections shortly. Supporting this assessment, proprietary metrics assign Peakstone a high momentum score of 94.03 and a value rating of 64.94, underscoring strong recent price and fundamental signals alongside potential valuation considerations.
Veris Residential’s Recent Market Performance
Veris Residential has also seen a noticeable uptrend in its shares during early 2026. Anticipating transparency on its financial health, the company scheduled a conference call on February 25 to discuss its fourth-quarter and full-year 2025 results. This forthcoming disclosure might serve as a catalyst for investor reassessment.
In the five trading days leading up to the last recorded session, Veris' stock surged approximately 7%, climbing to a 52-week peak of $17.18. On the most recent trading day, shares rose an additional 4%, closing at $16.03. The company’s RSI was noted at 78, indicating a clear overbought condition. Given this elevated momentum, market participants following price action closely may anticipate corrections or increased volatility.
Market Context and Trading Insights
The real estate sector’s rapid price movements illustrate the dynamic nature of current market conditions, characterized by swift gains and heightened volatility. Momentum indicators like the RSI provide valuable, though not infallible, signals regarding possible short-term price reversals. Investors employing momentum-based strategies should remain cautious when such metrics exceed typical thresholds.
Additional tools such as the Edge Rankings offer comprehensive scores on momentum, value, and other factors to appraise stocks’ technical and fundamental profiles. Peakstone, for instance, scores highly in momentum and presents a moderate value rating, reflecting both enthusiasm and valuation considerations. Veris also demonstrates positive momentum but has yet to reflect comprehensive rankings in publicly available data.
Conclusion
Both Peakstone Realty Trust and Veris Residential have displayed significant price appreciation as of early February 2026, but the accompanying elevated RSI values suggest these stocks may face increased risk of near-term price adjustments. Investors, particularly those focused on momentum signals, should monitor upcoming corporate events such as Veris’ earnings call and the progress of the Brookfield acquisition of Peakstone, to better gauge future trajectories. Given these conditions, a cautious approach with attention to volatility is warranted in the sector.