3 of the Best Growth Stocks to Buy in October 2026

Finding well-valued growth stocks can be a challenge these days, with valuations rising and the S&P 500 hitting record levels. Investors need to be careful when investing in growth stocks to ensure that their decisions are based not only on growth opportunities but also on underlying fundamentals. Stocks with poor fundamentals could be vulnerable if there's a correction in the markets.

I think that the three best growth stocks to buy this month are Amazon (NASDAQ:AMZN), AbbVie (NYSE:ABBV), and Netflix (NASDAQ:NFLX). Here's a close look at each one of them.

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Amazon

Despite being a leader in the tech sector and having a high valuation of around $2.8 trillion in market cap, I still think Amazon's stock may be due for more of a rally than it's been on of late. This year, its shares are up just 11%, trailing the S&P 500's gains of around 14%.

Its valuation, however, isn't all that high, as its price-to-earnings (P/E) multiple is only 20. While investment gains did recently pad its earnings numbers, this is a fairly low multiple to be paying for Amazon stock, which in previous years traded at far larger premiums.

The company is also investing heavily in artificial intelligence (AI), developing its own chips, and it has a robotaxi business in Zoox that's still in its early stages.

Although I wouldn't call the tech giant underrated, I do think the market isn't valuing it appropriately. There could be a fair bit of upside for investors who buy Amazon stock today, which is why it's on this list. It's not a risky business to invest in, and its relatively low valuation makes it a great buy.

AbbVie

Another attractive option for growth-oriented investors is AbbVie, a major player in the healthcare sector. What I like about its business is not only how adaptable it is, but also how well diversified its operations are.

This is a stock that investors were worried about in the past due to patent expirations on its leading drug, Humira. Well, AbbVie has done just fine as Rinvoq and Skyrizi have made up for Humira's loss in revenue. AbbVie has been busy with acquisitions in growing its business, but unfortunately, acquisition-related expenses have weighed on its bottom line.

Thus, the healthcare stock can appear to be much more expensive than it really is if investors are focusing on the trailing P/E multiple of 75. The forward P/E multiple, which is based on analyst expectations of future earnings, is much more reliable in this case. At a forward P/E of just 16, AbbVie's stock suddenly looks cheap, as the S&P 500 average is a forward P/E of around 20.

Netflix

Yet another cheap-looking stock to buy in October is Netflix. It's down an incredible 27% this year. Despite posting double-digit growth and its earnings numbers still looking strong, investors have nonetheless remained bearish on the streaming stock.

The market appears to be pricing in the risk and uncertainty about its future growth prospects. Netflix's name has come up in acquisition rumors, and there have been concerns that its customers aren't highly engaged, ditching shows due to long gaps between seasons.

These concerns, however, aren't translating into the financials. In its most recent quarter, Netflix's revenue rose by 13%, with the company still projecting at least $51 billion in revenue for the full year -- that represents a year-over-year increase that's also around 13%.

Ultimately, Netflix is still doing a good job of keeping its customers subscribed, and that's evident with its sales remaining strong. The company doesn't lock customers into long-term agreements, so any problems would be quick to show up on quarterly earnings reports. Its growth is slowing, and that's not surprising given the size of the business, but it's not a sharp decline by any stretch.

At 22 times trailing earnings and a forward P/E of 19, Netflix is another incredibly attractive growth stock to buy right now. The stock's sell-off doesn't appear warranted.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Amazon, and Netflix. The Motley Fool has a disclosure policy.