2 Tech Stocks for November Long-Term Bulls

Subscribers to Chart of the Week received this commentary on Sunday, Nov. 1.

Tech turmoil has been driving market sentiment lower, leaving the month of October singed by concerns surrounding AI spending and the future of of Big Tech. A slew of disappointing earnings put a damper on outlook as well, with October closing shop on a sour note. However, there looks to be two names with a history of outperformance in November, which could bode well for Big Tech bulls still looking to get their fix in before year’s end.

Per data from Schaeffer’s Senior Quantitative Analyst Rocky White, data storage giant Seagate Technology (STX) has made the list of the 25 best stocks to own in November. STX has averaged a return of 10.1% over the past decade, finishing the month higher every time. From its Thursday close of $700.47, a surge of this magnitude could put STX at $770 by early December.

As of Friday afternoon, STX is on track to snap a four-day win streak, resuming its long-term pullback from its June 18 record high of $1,145. However, despite its multi-month drawdown, Seagate stock remains up 138% year to date with several levels of support emerging. The round $600 floor sits just beneath the shares, looming as support since mid-October and marking the site of the shares’ pre-earnings bull gap in late April.

From a technical perspective, short-term options traders are leaning bearish, per the stock’s Schaeffer's put/call open interest ratio (SOIR) of 1.19, which ranks higher than 88% of readings from the past year. Should this bearish attention begin to unwind, it could trigger more tailwinds for the equity.

Options are affordably priced, too. The security’s Schaeffer's Volatility Index (SVI) comes in at 68%, which stands higher than just 33% of all other readings from the 12 months. In other words, now might be the perfect time to buy the dip on computer hardware concern, STX.

The only other tech-adjacent name that made White’s list was data center powerhouse Coherent (COHR). Despite being at the bottom-half of the list, COHR averages an impressive 11.4% November gain, finishing the month higher nine times in the last 10 years. From its Thursday close of $237.22, a surge of this magnitude could put COHR just shy of $265 by December.

COHR is also seeing an influx of short-term bearish attention, per its SOIR of 1.62, which ranks in the 96th annual percentile. Should an unwind occur, it could put more wind at the equity’s back.

Similar to STX, COHR has pulled back from its summer record highs to renewed support, down more than 13% alongside the broader-market selloff Friday afternoon. The round $200 level sits just beneath struggling Coherent stock, with the shares now testing the ascending 360-day moving average. In other words, the stock’s Friday bear gap could be presenting the perfect buying opportunity for long-term bullish bettors.