Two Real Estate Stocks at High Risk of Collapse in Q3: Cushman & Wakefield and Compass Inc.

Monday, Aug 11, 2025 9:16 am ET1min read

Two real estate stocks, Cushman & Wakefield (CWK) and Compass (COMP), are showing warning signs for investors. CWK's RSI is at 76.3, indicating overbought status, while COMP's RSI is at 70.9. Both stocks have gained significantly over the past month, with CWK up 17% and COMP up 25%. However, their high RSI values suggest a potential decline in Q3.

Investors should be cautious about two prominent real estate stocks, Cushman & Wakefield (CWK) and Compass (COMP), given recent market indicators. Both stocks have shown significant gains over the past month, with CWK up 17% and COMP up 25%. However, their high Relative Strength Index (RSI) values suggest a potential decline in the third quarter (Q3).

Cushman & Wakefield (CWK) reported a strong second quarter 2025, with sales of US$2.48 billion and net income of US$57.3 million, reflecting substantial year-over-year increases and a return to profitability. The company's RSI stands at 76.3, indicating an overbought status [1]. This suggests that the stock may be due for a correction, as high RSI values typically precede a downturn in price.

Compass (COMP), on the other hand, has seen its stock price rise significantly over the past month, with a 25% increase. The company's RSI is at 70.9, also indicating an overbought condition [2]. This high RSI value, combined with the stock's recent price appreciation, could signal a potential decline in Q3.

Investors should closely monitor these stocks for signs of a market slowdown or rising debt costs, which remain core challenges for both companies. While the second quarter results for Cushman & Wakefield suggest operational improvements, the commercial real estate cycle remains unpredictable, and investors should be watchful for any signs of market shifts.

References:
1. [1] https://simplywall.st/stocks/us/real-estate-management-and-development/nyse-cwk/cushman-wakefield/news/why-cushman-wakefield-cwk-is-up-115-after-strong-q2-profitab
2. [2] https://coincodex.com/stock/CMPS/price-prediction/

Two Real Estate Stocks at High Risk of Collapse in Q3: Cushman & Wakefield and Compass Inc.

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