For Immediate Release
Chicago, IL – June 23, 2026 – Stocks in this week’s article Seagate Technology Holdings plc STX and Western Digital Corp. WDC.
Seagate & One Other AI Memory Momentum Stock with Big Upside
Investors seeking outsized returns should focus on high-momentum stocks. To identify stocks with continued upside, they can adopt Richard Driehaus’s well-known “buy high and sell higher” approach, which secured him a place on Barron’s All-Century Team.
Using the Driehaus momentum-investing approach, artificial intelligence (AI) memory stocks, Seagate Technology Holdings plc and Western Digital Corp. have emerged as strong momentum candidates and potentially attractive entry points for investors. These stocks are gaining because the AI boom is accelerating data center expansion, driving strong demand for large-scale, cost-efficient data storage solutions.
Inside the Driehaus Strategy: A Guide to Momentum Investing
Regarding the strategy, Driehaus once said: “I would much rather invest in a stock that’s increasing in price and take the risk that it may begin to decline than invest in a stock that’s already in decline and try to guess when it will turn around.” In line with this insight, the American Association of Individual Investors (“AAII”) considered the 50-day moving average one of the key criteria when creating a portfolio in line with Driehaus’ philosophy.
It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator — positive relative strength — has also been included in this strategy. A positive percentage 50-day moving average indicates that the stock is trading above its 50-day moving average, signaling an uptrend.
Moreover, AAII found that Driehaus primarily focuses on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also prioritized in this strategy, which was designed to deliver better long-term returns.
These few parameters have narrowed the universe of more than 7,743 stocks to only 18.
Here are the top two stocks:
Seagate Technology
Seagate Technology provides data storage technology and infrastructure solutions across global markets, including Singapore, the United States and the Netherlands. It has a Momentum Score of B. The trailing four-quarter earnings surprise for STX is 10.7%, on average. The company’s expected earnings growth rate for the current year is 84.3% (read more: Micron & Another AI Memory Stock to Buy Now for Big Upside).
Western Digital
Western Digital designs and sells hard disk drive-based data storage solutions across the United States, Asia, Europe, the Middle East and Africa. It has a Momentum Score of B. The trailing four-quarter earnings surprise for WDC is 11.6%, on average. The company’s expected earnings growth rate for the current year is 103.9%.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWestern Digital Corporation (WDC) : Free Stock Analysis Report
Seagate Technology Holdings PLC (STX) : Free Stock Analysis Report
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