3 Stocks Showing Relative Strength as Markets Pull Back
The market is starting to show signs of exhaustion this week, just as seasonal weakness begins to weigh on sentiment. Coming into Friday, the popular SPDR S&P 500 ETF Trust (NYSEARCA: SPY), a broad market benchmark, was down 1.4%. Still, SPY remains in a firm uptrend, well above its 50-day simple moving average, and the bull market structure is intact. But if this softness marks the start of a deeper year-end pullback, investors may want to consider defensive positioning.
A smart approach when markets weaken is to focus on relative strength: the names that continue to lead, hold up, or even make new highs when the market slips. Three stocks in particular are doing precisely that and continue to outpace their sectors. If these names continue to lead, their outperformance could continue into year-end.
Seagate Technology: A Top Performer Riding the AI Data Wave
Seagate Technology (NASDAQ: STX) has been one of the top-performing companies in the S&P 500 this year and one of the strongest in the tech sector. The company specializes in global data storage solutions, from hard drives to enterprise-level storage systems.
Its products have seen rapidly rising demand as AI continues to reshape the data landscape.
Businesses expanding their cloud capacity, increasing computing power, and backing up larger datasets need both cloud-based and physical storage solutions—and that’s where Seagate excels.
Companies are not just storing data online; they are adding multiple backup layers, including local copies that do not rely on internet access.
That shift has driven a substantial increase in demand for Seagate’s physical storage solutions.
This represents a sharp reversal from the last few years, during which Seagate struggled to generate consistent growth. Now, both the business and the stock have turned the corner. Momentum accelerated following fiscal year Q1 2026 earnings on Oct. 28.
The company delivered earnings per share (EPS) of $2.61, beating the $2.40 consensus, while revenue climbed 21.3% YOY to $2.63 billion, also above expectations. Analysts have responded aggressively, with a Moderate Buy rating and a consensus price target of $268.64, up from just $151.44 in August.
The stock is consolidating near 52-week highs in a bullish formation and remains green on the week, while the market is trading lower. That relative strength stands out.
Alphabet: A Resurgent AI Leader With Surging Earnings
Alphabet (NASDAQ: GOOGL) has been one of the strongest comeback stories in the Magnificent Seven this year. After a sluggish first half and bearish sentiment surrounding its AI positioning, the company has flipped the narrative —and then some.
Two back-to-back blockbuster earnings reports have made something clear: Alphabet doesn't just plan to participate in AI, it wants to dominate it.
The stock has surged over 100% from its 52-week low, and 41.3% over the last quarter alone, with the latest breakout coming after its impressive Q3 earnings.
For the first time, Alphabet generated more than $100 billion in quarterly revenue, posting $102.35 billion versus expectations of $99.9 billion. Net income jumped to $34.97 billion from $26.3 billion a year earlier, and EPS beat by 58 cents. The Google Cloud segment remains a standout driver with a deep backlog, reinforcing long-term demand.
Technically, the stock continues to outperform the market. Coming into Friday, GOOGL was up 1.16% on the week and holding firmly above the $280 support zone. The recent consolidation is now acting as a potential springboard for a move back toward the highs.
Bloom Energy: A Mid-Cap Clean Energy Standout
Bloom Energy (NYSE: BE) has been one of the most explosive mid-cap performers of the year, with shares rallying more than 516%. The company develops solid oxide fuel cell systems for on-site power generation, converting natural gas, biogas, or hydrogen into electricity with lower carbon output.
The flagship Bloom Energy Server gives companies a reliable alternative to the grid, a compelling selling point as clean energy adoption accelerates worldwide.
The company’s positioning within the renewable energy trend has driven both fundamental and stock momentum, and Q3 2025 earnings reinforced that momentum.
Bloom posted earnings of 15 cents per share, beating estimates of 8 cents. Revenue jumped 57.1% year-over-year to $519.05 million, well ahead of the expected $425.18 million.
As with many mid-caps, investors should expect volatility. However, the relative strength is undeniable. As of Thursday’s close, Bloom is up more than 7% on the week and trading near all-time highs while the broader market is negative. For traders watching sector leadership, Bloom remains a top watch.
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