October’s Top 5 Stocks Poised for Big Breakouts

Key Points

• September was a strong month for the market, with names like Oklo, Amprius, and CrowdStrike moving higher.
• Improving outlooks for growth and profits drive these markets. 
• Analyst trends are driving them higher with new highs expected for most before the end of the year.

September was not just a hot month on the calendar; it was also a breakout period for the stock market. A wave of renewed optimism and stronger outlooks helped lift the S&P 500 to fresh all-time highs, with a handful of companies driving much of the momentum. As investors turn their attention toward the final stretch of the year, the key question is which stocks can keep the rally alive and deliver further gains in the months ahead.

This review highlights five stocks with improving fundamentals, stronger analyst sentiment, and clear potential to build on recent momentum. From energy innovation to enterprise AI and cybersecurity, these names demonstrate why September’s surge may only be the beginning.

Oklo Market Cools Off; Pulls Back Into Buying Opportunity 

Oklo NYSE: OKLO reached a peak in late September and subsequently pulled back into a buying opportunity. The pullback is due to cooling sentiment, but there is a caveat.

The cooldown was caused by caution following the triple-digit summer run-up, not by a deterioration in the outlook. If anything, the outlook continues to improve, with the deal pipeline growing and the path to commercial viability becoming clearer. 

Regarding the analysts, no analysts reduced their price target. A few have reduced their ratings to Hold or Neutral equivalents from higher levels. The trend, however, reveals that coverage has improved considerably over the last six months. The sentiment is firm, and the price target is rising, up 26% in the preceding 30-day period and more than 700% since last year. 

Amprius Technologies: Ditto on the Pullback/Buying Opportunity

Amprius Technologies NYSE: AMPX is in a similar position to Oklo. However, this company is not pre-revenue; revenue is ramping at a hyper pace and is expected to be strong in the upcoming report.

This market broke to a long-term high in September, entering a consolidation at the month’s end. 

The consolidation shows support above the critical level, coinciding with the now-broken resistance point, and is likely to result in new highs before the end of the year.

The catalyst for this move will be the upcoming earnings report, in which revenue is forecasted to grow by 10% sequentially and 110% year-over-year, driven by the outperformance of consensus estimates. 

Workday Stock Is Poised to Reach New Highs

Workday’s NASDAQ: WDAY stock price has struggled with traction over the past few years due to an uncertain growth outlook. The company was growing and positioned to continue, but the gains were mostly priced in; outperformance was not part of the equation.

The story in October is that the business is regaining momentum due to AI technology and automation.

Workday is a leading HR automation platform that is growing its client base, deepening its penetration of existing clients, and expanding an ecosystem in which its services integrate with other leading enterprise-quality SaaS platforms.

September news includes plans to accelerate the expansion of its ecosystem, new partnerships with hyperscalers, and a positive impact on analysts' sentiment. Sentiment trends include increased coverage, a strengthened Moderate Buy rating, and price target increases, which are driving the stock toward the $300 level. 

Salesforce: Market Shift Provides Opening for Long-Term Oriented Investment

Salesforce’s NYSE: CRM market has struggled because the company, although growing, has failed to impress the analysts.

The takeaway is that this blue-chip, megacap, industry-leading AI powerhouse is growing at a double-digit pace, producing robust margins, and maintaining a healthy cash flow. 

Salesforce’s cash flow is aimed at several objectives, including growth and capital return. The capital return is an attractive opportunity because it includes a dividend and share repurchases that are reliable, expected to grow in size, and reduce the share count, providing leverage to investors.

CRM stock may never experience a wicked hot rally again, but it is deeply undervalued in early October and likely to rise by 50% or more over the next four to six quarters. 

CrowdStrike Reinvigorates Growth Outlook: Analysts Respond Favorably

CrowdStrike NASDAQ: CRWD is another company that has reinvigorated its growth outlook, driving its stock up approximately 20% in September.

The move was driven by outperformance, improved guidance, new partnerships with Salesforce, and strengthening sentiment.

The analyst trends reveal strong and improving coverage, with 47 ratings tracked by MarketBeat firming sentiment and a bullish bias, resulting in a Moderate Buy rating.

The forecast indicates that the stock is expected to rise by as much as 25% over the next few quarters.