This Data Center Stock Is Up 733% in a Year

• IREN, formerly known as Iris Energy (IREN), operates renewable-powered data centers for Bitcoin mining and artificial intelligence.
• IREN has surged 733% in the past year, with strong technical indicators and a Trend Seeker “Buy” signal.
• Analysts project robust revenue and earnings growth for IREN, but opinions are mixed due to volatility and overvaluation concerns.
• While IREN offers outstanding growth potential, disciplined risk management is essential given its speculative nature and wide-ranging analyst targets.

Today’s Featured Stock

Valued at $18.9 billion, IREN (IREN) owns and operates data centers powered by renewable energy. Its facilities are optimized for Bitcoin mining, artificial intelligence, cloud services, and other power-dense computing.  

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. IREN checks those boxes. Since the Trend Seeker signaled a new “Buy” on Aug. 6, the stock has gained 295.03%.

More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.

 

www.barchart.com

Barchart Technical Indicators for IREN

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

IREN hit an all-time high of $74.15 in morning trading on Oct. 15.

• IREN has a Weighted Alpha of +863.99.
• It has an 100% “Buy” opinion from Barchart.
• The stock gained 733.33% over the past year.
• IREN has its Trend Seeker “Buy” signal intact.
• The stock has made 15 new highs and gained 95.88% in the last month.
• Relative Strength Index (RSI) is at 79.73.
• There’s a technical support level around $62.03.

Don’t Forget the Fundamentals

• $18.9 billion market capitalization.
• 1,069x trailing price-earnings ratio.
• Revenue is projected to grow 130.07% this year and another 126.51% next year.
• Earnings are estimated to increase by 179.11% this year and an additional 79.73% next year.

Analyst and Investor Sentiment on IREN

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts have mixed opinions on IREN.

• The Wall Street analysts tracked by Barchart have issued 9 “Strong Buy,” 3 “Hold” and 1 “Strong Sell” opinion on the stock with price targets between $24 and $82, a very wide range.
• Value Line does not rate the stock.
• CFRA’s MarketScope Advisor rates it a “Hold.”
• Morningstar thinks the stock is 76% overvalued.
• 24 investors following the stock on Motley Fool think the stock will beat the market while 7 think it won’t.
• 19,030 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold" and comments: “IREN exhibits outstanding growth and strong stock momentum, but faces challenges with its high valuation and mixed profitability metrics. While the stock’s revenue revisions are encouraging, the overall financial landscape suggests a Hold rating, as the company is expected to perform in line with its sector peers.”

The Bottom Line on IREN

Analysts project terrific growth in revenue and earnings for IREN, and the company has a solid following by Wall Street analysts. Investors should note the stock’s extreme volatility and employ disciplined risk management.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.