Investors Eye 3 Stocks with Strong Relative Strength Amid Downturn

Investors should focus on stocks exhibiting relative strength during market downturns. The analysis reveals three stocks—IREN, SERV, and FUTU—that buck the trend, with strong catalysts driving their performance even in a red market.

Date: 09-02-2025

AI Rating: 7

Understanding Relative Strength
Relative strength (RS) is a key indicator for investors to gauge stock performance against general market trends, particularly during down markets. In such conditions, identifying stocks that outperform the market can present lucrative opportunities.

Stocks to Watch
Three stocks stand out for their relative strength: IREN Limited (IREN), Serve Robotics (SERV), and Futu Holdings (FUTU). Each demonstrates resilience in prevailing market conditions, and their respective catalysts may significantly impact future performance.

IREN Limited: Growth in Renewable Energy and AI
IREN is focused on sustainable energy solutions and has benefitted from trends in AI and cryptocurrency. Despite current market conditions, shares rose over 5%, supported by the ongoing demand for data centers, particularly for AI firms like Alphabet (GOOGL) and Microsoft (MSFT). Although there's no explicit EPS, revenue growth, or net income mentioned, the overall bullish sentiment following IREN’s performance indicates potential upside for investors.

Serve Robotics: Innovative Food Delivery
SERV's advancements in AI-powered delivery robots align with changing consumer preferences, positioning it well for future growth. The expected earnings jump of 51.35% next quarter and 38.01% for the full-year 2025 points to significant revenue growth potential, enhancing the stock's appeal.

Futu Holdings: Q1 Earnings Momentum
FUTU demonstrated a year-over-year earnings growth of 21% in the last reported quarter, suggesting robust financial health. The 5% rise in shares and a bull flag pattern are promising indicators of future performance. No detailed figures on profit margins or FCF were included, but the income growth is a favorable sign.

Conclusion
Investors should remain attentive to opportunities among stocks with strong RS during downturns, as seen with IREN, SERV, and FUTU. Their compelling catalysts and positive market reception could lead to favorable stock price movements in the near future.

Stocks: IREN SERV FUTU GOOGL MSFT SHAK UBER