Schaeffer's Top Stock Picks for '25

This REIT Could See Some Headwinds in December

DLR's recent rally could be over

Digital Content Manager
Nov 30, 2022 at 1:28 PM
facebook X logo linkedin


In August, we warned against investing in real estate investment trusts (REITs) in the coming month, based on miserable seasonality trends and a slew of other factors. One of the names that we highlighted was Digital Reality Trust Inc (NYSE:DLR).

Our prediction, for DLR specifically, wound up being spot on, as the equity began its plummet toward its Oct. 13, six-year low of $85.76 in the middle of the month and wound up losing almost 20% in September -- marking its worst month on record. 

Since this low, however, DLR has enjoyed a notable rebound. The security is set to string together it's second-straight monthly win, and gapped above recent pressure at the $102 mark in mid-November. This could be the extent of the rally, however, as the REIT loses steam near the 80-day moving average.

In fact, this trendline has had historically bearish implications in the past, according to a study from Schaeffer's Quantitative Analyst Rocky White. This data shows that DLR has seen five similar occurrences during the last three years. One month later, the security was lower 80% of the time, averaging a 2.5% drop. A similar move from its current perch would put Digital Reality Trust stock at $105.80. 

dlr nov 30

The stock could be ripe for a round of bear notes. Of the 15 in coverage, all but four call it a "buy" or better. Plus, the 12-month consensus price target of $125.53 is a 15.8% premium to current levels. 

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter