What Happened?
Shares of real estate technology company The Real Brokerage (NASDAQ: REAX) jumped 5.3% in the morning session after a bullish consensus from Wall Street analysts.
The company holds a consensus 'Buy' rating based on the opinions of three analysts covering the stock over the past twelve months. Among them, two have issued a 'buy' rating and one a 'strong buy.' The average twelve-month price target for the company stands at $6.33, which represents a potential upside of over 26% from its recent trading price of around $5.01. This optimistic outlook from financial analysts appears to be bolstering investor confidence in the company's future performance.
Is now the time to buy The Real Brokerage? Access our full analysis report here, it’s free.
What Is The Market Telling Us
The Real Brokerage’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 22 days ago when the stock gained 3.7% on the news that markets rebounded following a sharp sell-off in the previous trading session as weaker-than-expected U.S. jobs data fueled investor hopes for a potential interest rate cut by the Federal Reserve. The July Nonfarm Payrolls report revealed a gain of only 73,000 jobs, significantly below the 110,000 expected.
Compounding the news, prior months' figures were revised downward by over 250,000 jobs. This data, indicating a cooling labor market, has led investors to dramatically increase bets on a September interest rate cut by the Federal Reserve, with the probability jumping to over 80% according to the CME FedWatch Tool. The prospect of lower borrowing costs typically stimulates economic activity and boosts consumer spending on non-essential goods and services, which directly benefits companies in the consumer discretionary space.
The Real Brokerage is up 14.9% since the beginning of the year, but at $5.28 per share, it is still trading 18.7% below its 52-week high of $6.50 from November 2024. Investors who bought $1,000 worth of The Real Brokerage’s shares 5 years ago would now be looking at an investment worth $5,683.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
