Top Momentum Stocks to Watch This Week in the Market

Investors and traders increasingly look to momentum stocks as a strategy to capture gains from stocks with rising price trends and strong market interest. According to recent research updates, three equities stood out on January 21, 2026, as top momentum picks based on new Zacks Rank #1 (Strong Buy) additions: LRCX, BNPQY, and LRLCY. These stocks have been highlighted by analysts for their recent performance, rising trends, and potential future strength in the markets.

Understanding Momentum Investing

Momentum investing is a strategy that focuses on stocks that have exhibited strong price performance over recent periods, often with the assumption that these trends will continue in the near term. This approach can involve technical factors like price strength and volume, as well as fundamental support like earnings upgrades. Many tools like the Zacks Rank and Momentum Style Scores help quantify how strong a stock’s upward trend is relative to others.

The goal is to "buy high to sell higher," meaning investors look for stocks that have already shown upward momentum and hope that this trend persists. Momentum strategies can be used in both short-term trading and longer-term investing, but they always require careful risk management, as sharp reversals are possible.

Featured Momentum Stocks for January 21, 2026

Here’s a more detailed look at each of the three key stocks recently added to the momentum list for January 21st and why they’ve attracted attention from investors.

1. Lam Research (LRCX)

Lam Research Corporation (LRCX) is one of the most closely watched semiconductor equipment companies, designing and manufacturing tools used in the fabrication of advanced chips. Founded in 1980 and headquartered in Fremont, California, Lam Research plays a critical role in the global semiconductor supply chain. Its equipment helps create the tiny, complex components that power modern electronics.

Market Momentum and Price Performance

Lam Research has shown significant price strength, outperforming broader industry benchmarks as demand increases for semiconductor manufacturing tooling. Over recent quarters, LRCX stock has demonstrated strong year-over-year gains, reflecting both increased investor interest and strong technical setup. Analyst and market commentary has highlighted its upward trend, noting substantial gains over weekly, quarterly, and annual periods relative to peers.

Sector Tailwinds and AI Demand

One of the biggest drivers behind Lam’s momentum has been the continued growth in demand for artificial intelligence infrastructure. Chipmakers globally are increasing capital expenditures to expand production of AI-capable chips, and equipment providers like LRCX benefit directly from these spending trends. Recent market reports have tied strength in semiconductor capital equipment stocks to broader AI and data center trends.

Analyst Coverage and Outlook

Analysts have been upbeat on Lam Research’s prospects. Some firms have raised revenue and earnings estimates, while others point to significant upside potential as the company continues to benefit from secular growth in semiconductors. Valuation considerations remain mixed in some views, but technical and fundamental momentum indicators remain solid.

Lam Research has also been projected to report quarterly earnings that may show continued strong performance, with consensus estimates suggesting solid revenue and earnings figures for the upcoming quarter.

2. BNP Paribas SA (BNPQY)

BNP Paribas SA (BNPQY) is the U.S. traded ADR of one of Europe’s largest banking institutions. While banking stocks can behave differently from tech names, BNP Paribas has recently shown positive trend characteristics that have attracted momentum investors.

Momentum Signals

BNPQY has displayed encouraging short-term price movements that outpaced its industry counterparts, with weekly and monthly gains that signal rising investor interest. In momentum scoring systems, BNPQY has posted an "A" grade for its Style Score, indicating strong relative performance versus peers.

Technical and Fundamental Support

Recent technical signals, including moving average crossovers like a “golden cross” (where a shorter-term moving average crosses above a longer-term one), have been cited as bullish indicators for BNPQY. These types of signals often suggest strengthening trend momentum that can attract further buying interest.

Additionally, analysts’ price forecasts for BNPQY suggest a potential for further growth with an average price target indicating upside from current levels. This analyst outlook can help reinforce momentum as traders often pay attention to consensus target moves.

Investment Considerations

Investors looking at BNPQY should weigh global banking trends, interest rate environments, and regional economic factors that could influence performance. The stock’s rising momentum signals combined with solid fundamentals make it a notable pick for momentum-oriented portfolios.

3. LRLCY (Overseas Listing / Minor Momentum Candidate)

Another addition to the momentum list on January 21st was LRLCY, a U.S. OTC ticker that often represents shares of international companies trading in U.S. markets. While less widely covered in mainstream exchanges, LRLCY’s inclusion on the momentum list signals strong recent price activity.

Investors should research the underlying company fundamentals and market drivers for such listings, as momentum can sometimes be driven by unique catalysts like earnings beats, news events, or sector rotations.

How to Use Momentum Stocks in Your Portfolio

Momentum investing can be applied in different ways depending on your time horizon and risk tolerance:

• Short-Term Trading: Traders often use momentum signals to enter positions that may last days or weeks, aiming to capitalize on continued strength in price action.
• Longer-Term Investment: Some investors use momentum as a confirmation of quality, combining it with strong fundamentals to hold positions for months or longer.
• Risk Management: Momentum stocks can shift direction quickly. Use tools like stop-loss orders, risk sizing, and diversification to manage potential drawdowns.

It’s important to remember that past performance is not a guarantee of future results, and momentum strategies should be complemented by careful analysis and risk discipline.

Market Context and Broader Trends

The broader markets in early 2026 have seen continued interest in technology and financial sectors. Momentum investors often look to sectors with strong growth catalysts — like AI acceleration in semiconductors or improving banking performance — which can create pockets of strength across the market. Analysts have noted that AI-related demand and capital expenditures are key drivers for semiconductor equipment stocks.

Meanwhile, financial stocks like BNP Paribas benefit from shifts in global interest rates and banking fundamentals, which can support rising stock prices when conditions align.

Conclusion

For the week of January 21, 2026, momentum investors will want to watch LRCX, BNPQY, and LRLCY, as these stocks have recently made the list of Strong Buy momentum candidates based on Zacks rankings and market performance. Each represents a different industry and set of drivers, offering a diversified look at where momentum is building in the market.

Keep in mind that momentum is dynamic: trends can shift quickly, and it’s essential to stay informed with the latest price action, earnings reports, and market news that could influence these stocks going into the rest of 2026.

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