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5 Momentum Stocks to Buy for October After a Solid September
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Key Takeaways
U.S. markets extended gains in 2025, hitting new highs amid rate-cut hopes and AI-driven optimism.
Five momentum picks for October, namely ADI, CCL, WDC, DOCU and WDAY with solid earnings outlooks.
Each stock shows improving earnings estimates and growth potential across AI, travel and data center space.
U.S. stock markets have continued their northward journey in 2025 following an impressive rally over the previous two years. In August, all three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — advanced 1.9%, 3.5% and 5.6%, respectively.
These three indexes also recorded several all-time and closing highs last month. These gains were driven by expectations of further Fed rate cuts, strong second-quarter earnings and optimism about artificial intelligence.
At this stage, it will be prudent to invest in stocks with a favorable Zacks Rank that have momentum in October. Five such stocks are: Analog Devices Inc. (ADI - Free Report) , Carnival Corp. & plc (CCL - Free Report) , Western Digital Corp. (WDC - Free Report) , DocuSign Inc. (DOCU - Free Report) and Workday Inc. (WDAY - Free Report) .
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Analog Devices Inc.
Analog Devices has demonstrated broad-based recovery, margin resilience and strong free cash flow generation. Secular growth drivers in automation, AI infrastructure, and automotive electrification offer multi-year tailwinds. Strong momentum across the electric vehicle space, driven by its robust Battery Management System solutions, remains a catalyst for ADI.
AI-driven demand for automatic test equipment is fueling a surge in ADI’s signal chain and power content, with memory test system content increasing 300%. With lean channel inventories, strong order momentum and improved bookings, ADI’s industrial business is well-positioned for a sustained upcycle.
Strong investments in technology and business innovation are contributing well. Strategic partnerships and internal fab investments position ADI for sustainable growth. ADI’s strong cash flow generation capability and aggressive shareholder return policies are other positives.
Analog Devices has an expected revenue and earnings growth rate of 11.8% and 19.4%, respectively, for the next year (ending October 2026). The Zacks Consensus Estimate for next-year earnings has improved 0.4% over the last 30 days.
Carnival Corp. & plc
Carnival has been benefiting from resilient travel demand, stronger booking trends, higher onboard spending, and disciplined cost management. CCL’s solid execution across these areas led management to raise its full-year 2025 guidance, supported by operational efficiencies and strategic growth initiatives. CCL is also prioritizing fleet optimization, new ship launches, and targeted marketing investments to capture rising global demand.
Carnival is aggressively expanding its destination footprint to enhance guest experiences and drive high-margin revenue growth. CCL continues to invest in modern, guest-centric ships to fuel long-term demand.
AIDAdiva, the first vessel completed under the AIDA Evolution refurbishment program, has seen strong post-upgrade performance, prompting six additional AIDA ships to undergo similar transformations. CCL also ordered two newbuilds for AIDA, scheduled for delivery in 2030 and 2032.
Carnival has an expected revenue and earnings growth rate of 6.3% and 47.9%, respectively, for the current year (ending November 2025). The Zacks Consensus Estimate for current-year earnings has improved 1% over the last seven days.
Western Digital Corp.
Western Digital has been witnessing strong execution amid intensified cloud and AI demand. Cloud end market (90% of total revenue) surged 36% in the last reported quarter, driven by strong demand for high-capacity nearline HDDs. WDC doubled shipments of 26TB CMR and 32TB UltraSMR drives and is on track to ramp up HAMR drives in the first half of 2027.
WDC expects the proliferation of generative AI-driven storage deployments to result in a client and consumer device refresh cycle, and boost content creation and storage in smartphone, gaming, PC and consumer electronics in the long run. The increasing AI adoption is likely to drive increased storage demand across both HDD and Flash at the edge and core, thereby providing ample business opportunities.
Generative AI adoption surged to 65% in 2024 from 33% in 2023. Gen AI adoption is driving eSSD sales due to its speed, reliability and efficiency over HDDs. Growing AI data boosts demand, fueling eSSD market growth and reshaping storage.
Agentic AI is driving future data growth, while its platform business is gaining traction among native AI firms and SaaS providers. WDC expects fiscal first-quarter 2026 revenues of $2.7 billion (+/- $100 million), up 22%, driven by strong data center demand and high-capacity drive adoption.
Western Digital has an expected revenue and earnings growth rate of -17.8% and 34.3%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the last 30 days.
DocuSign Inc.
DocuSign’s strength lies within its subscription revenues, and it has accounted for the majority of its top line over the past three years. DOCU continues to translate its selling expenses into international growth efficiently.
The same can be said about its R&D focus, which has driven product enhancements, improved customer experience and helped retain a growing customer base. DOCU’s strong relationships with tech giants like Salesforce and Microsoft further support this ecosystem. DOCU has deepened its relationships with tech giants such as Salesforce and Microsoft.
DocuSign has an expected revenue and earnings growth rate of 7.1% and 3.9%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for the current-year earnings has improved 1.4% over the last 30 days.
Workday Inc.
Workday’s diversified product portfolio continues to yield a steady flow of customers. WDAY’s cloud-based business model and expanding product portfolio have been the primary growth drivers. The company is also gaining traction in the international market. WDAY has a strong balance sheet and ample liquidity. This allows the company to invest in portfolio expansion and strategic acquisitions.
Significant investment from Elliott Investment Management will likely drive innovation. Management is putting a strong focus on integrating advanced AI and ML capabilities. This will drive long-term benefits. WDAY’s solid customer wins in education, healthcare, financial Services, retail and hospitality verticals are driving the top line.
Workday has an expected revenue and earnings growth rate of 12.6% and 21.1%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days.
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5 Momentum Stocks to Buy for October After a Solid September
Key Takeaways
U.S. stock markets have continued their northward journey in 2025 following an impressive rally over the previous two years. In August, all three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — advanced 1.9%, 3.5% and 5.6%, respectively.
These three indexes also recorded several all-time and closing highs last month. These gains were driven by expectations of further Fed rate cuts, strong second-quarter earnings and optimism about artificial intelligence.
At this stage, it will be prudent to invest in stocks with a favorable Zacks Rank that have momentum in October. Five such stocks are: Analog Devices Inc. (ADI - Free Report) , Carnival Corp. & plc (CCL - Free Report) , Western Digital Corp. (WDC - Free Report) , DocuSign Inc. (DOCU - Free Report) and Workday Inc. (WDAY - Free Report) .
Each of our picks currently sports a Zacks Rank #1 (Strong Buy) and has a Zacks Momentum Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past three months.
Image Source: Zacks Investment Research
Analog Devices Inc.
Analog Devices has demonstrated broad-based recovery, margin resilience and strong free cash flow generation. Secular growth drivers in automation, AI infrastructure, and automotive electrification offer multi-year tailwinds. Strong momentum across the electric vehicle space, driven by its robust Battery Management System solutions, remains a catalyst for ADI.
AI-driven demand for automatic test equipment is fueling a surge in ADI’s signal chain and power content, with memory test system content increasing 300%. With lean channel inventories, strong order momentum and improved bookings, ADI’s industrial business is well-positioned for a sustained upcycle.
Strong investments in technology and business innovation are contributing well. Strategic partnerships and internal fab investments position ADI for sustainable growth. ADI’s strong cash flow generation capability and aggressive shareholder return policies are other positives.
Analog Devices has an expected revenue and earnings growth rate of 11.8% and 19.4%, respectively, for the next year (ending October 2026). The Zacks Consensus Estimate for next-year earnings has improved 0.4% over the last 30 days.
Carnival Corp. & plc
Carnival has been benefiting from resilient travel demand, stronger booking trends, higher onboard spending, and disciplined cost management. CCL’s solid execution across these areas led management to raise its full-year 2025 guidance, supported by operational efficiencies and strategic growth initiatives. CCL is also prioritizing fleet optimization, new ship launches, and targeted marketing investments to capture rising global demand.
Carnival is aggressively expanding its destination footprint to enhance guest experiences and drive high-margin revenue growth. CCL continues to invest in modern, guest-centric ships to fuel long-term demand.
AIDAdiva, the first vessel completed under the AIDA Evolution refurbishment program, has seen strong post-upgrade performance, prompting six additional AIDA ships to undergo similar transformations. CCL also ordered two newbuilds for AIDA, scheduled for delivery in 2030 and 2032.
Carnival has an expected revenue and earnings growth rate of 6.3% and 47.9%, respectively, for the current year (ending November 2025). The Zacks Consensus Estimate for current-year earnings has improved 1% over the last seven days.
Western Digital Corp.
Western Digital has been witnessing strong execution amid intensified cloud and AI demand. Cloud end market (90% of total revenue) surged 36% in the last reported quarter, driven by strong demand for high-capacity nearline HDDs. WDC doubled shipments of 26TB CMR and 32TB UltraSMR drives and is on track to ramp up HAMR drives in the first half of 2027.
WDC expects the proliferation of generative AI-driven storage deployments to result in a client and consumer device refresh cycle, and boost content creation and storage in smartphone, gaming, PC and consumer electronics in the long run. The increasing AI adoption is likely to drive increased storage demand across both HDD and Flash at the edge and core, thereby providing ample business opportunities.
Generative AI adoption surged to 65% in 2024 from 33% in 2023. Gen AI adoption is driving eSSD sales due to its speed, reliability and efficiency over HDDs. Growing AI data boosts demand, fueling eSSD market growth and reshaping storage.
Agentic AI is driving future data growth, while its platform business is gaining traction among native AI firms and SaaS providers. WDC expects fiscal first-quarter 2026 revenues of $2.7 billion (+/- $100 million), up 22%, driven by strong data center demand and high-capacity drive adoption.
Western Digital has an expected revenue and earnings growth rate of -17.8% and 34.3%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the last 30 days.
DocuSign Inc.
DocuSign’s strength lies within its subscription revenues, and it has accounted for the majority of its top line over the past three years. DOCU continues to translate its selling expenses into international growth efficiently.
The same can be said about its R&D focus, which has driven product enhancements, improved customer experience and helped retain a growing customer base. DOCU’s strong relationships with tech giants like Salesforce and Microsoft further support this ecosystem. DOCU has deepened its relationships with tech giants such as Salesforce and Microsoft.
DocuSign has an expected revenue and earnings growth rate of 7.1% and 3.9%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for the current-year earnings has improved 1.4% over the last 30 days.
Workday Inc.
Workday’s diversified product portfolio continues to yield a steady flow of customers. WDAY’s cloud-based business model and expanding product portfolio have been the primary growth drivers. The company is also gaining traction in the international market. WDAY has a strong balance sheet and ample liquidity. This allows the company to invest in portfolio expansion and strategic acquisitions.
Significant investment from Elliott Investment Management will likely drive innovation. Management is putting a strong focus on integrating advanced AI and ML capabilities. This will drive long-term benefits. WDAY’s solid customer wins in education, healthcare, financial Services, retail and hospitality verticals are driving the top line.
Workday has an expected revenue and earnings growth rate of 12.6% and 21.1%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days.