2 Growth Stocks With More Room to Run to Buy Ahead of 2026

It's been a pretty good year for Netflix (NASDAQ: NFLX) and Veeva Systems (NYSE: VEEV), with both stocks slightly outperforming broader equities since January. However, some might worry about recent pullbacks for both stocks. Could there be issues that will further sink their share prices and disrupt their prospects?

My view is that Netflix and Veeva Systems have excellent outlooks that should allow them to outperform the market, once again, over the long run, despite recent dips. Here's what investors need to know.

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1. Netflix

Netflix's third-quarter results slightly disappointed investors due to an unexpected tax expense, which led to lower-than-anticipated net income. It then made even more noise when it announced and implemented a 10-for-1 stock split. This move doesn't improve a company's underlying operations, but it often reveals that management has confidence in the business's near-term prospects.

The confidence is justified. The streaming specialist has been firing on all cylinders and could see a significant boost over the next 12 months as new launches or events lead to more subscribers, engagement, and a boost in sales within its still relatively new ad business. Netflix is releasing the final season of its hugely popular show Stranger Things, for instance, and will host live NFL games on Christmas Day for the second consecutive year.

This live event should attract a large audience and advertisers, potentially driving Netflix's sales higher. And beyond the next year, Netflix still has plenty of room to grow in the streaming market.

Streaming has gained significant traction over the past decade, but other forms of entertainment, particularly cable, are alive and well. Netflix's goal is to replace cable, so there is plenty more work to be done. But what about the competition? The company has thrived despite the changing competitive landscape thanks to at least two factors. First, Netflix has a strong brand name associated with streaming. That's where people gravitate toward the most. That's why it remains the leader in television viewing time among its relevant competitors.

Second, Netflix's extensive ecosystem and the data it has access to continue to enable it to craft a winning content strategy, providing a beautiful example of the network effect. These two factors grant Netflix a significant competitive edge and should allow it to be one of the primary beneficiaries of the remaining $650 billion opportunity the company sees across the markets it serves.

And investors shouldn't worry too much about the lower-than-expected third-quarter net income, as the tax expense it incurred should be a one-time thing and won't impact its results moving forward. So, Netflix could perform well heading into 2026, but more importantly, the company's long-term prospects are attractive.

2. Veeva Systems

Veeva Systems isn't the best-known cloud computing company. But it is the top player in the life sciences niche of the industry. Focusing on this single market has some disadvantages. Veeva Systems' cloud services aren't well-suited to the demands of most corporations outside the pharmaceutical, biotech, and medtech sectors. However, there is also a significant advantage.

Since Veeva Systems develops its cloud solutions with the unique demands of its clients and their industry in mind -- which include data integrity, patient confidentiality, and stringent regulatory oversight -- it has become one of the go-to providers for many of the largest companies in the sector it targets. Veeva Systems' client list includes notable companies such as Merck and Eli Lilly, among others.

The results of the company's strategy have been increased adoption of its services and strong financial results. In the third quarter of its fiscal year 2026, ending on Oct. 31, the company's revenue increased 16% year over year to $811.2 million, while its adjusted earnings per share came in at $2.04, up from the $1.75 reported in the year-ago period.

Veeva Systems' shares dropped despite strong results due to its guidance that implies lower growth than analysts had expected, coupled with the company potentially losing some major clients. Despite these challenges, there are excellent reasons to stick with Veeva Systems. Earlier this year, it achieved its goal of reaching an annual revenue run rate of $3 billion by 2025. It plans to double that total by 2030.

Veeva has generally met these targets on time or ahead of schedule. Doubling its revenue by 2030 would imply top-line growth in the mid-teens through the end of the decade, which is still a strong rate of growth. Furthermore, even an annual revenue of $6 billion would leave plenty of room for growth, as it estimates a total addressable market of $20 billion.This vast opportunity is a major reason Veeva Systems' long-term outlook is attractive.

Lastly, Veeva Systems should continue innovating and launching new services, as it has in the past. The company is gearing up to release Veeva AI, a suite of AI tools designed specifically for life science companies to help them boost productivity and efficiency, including in areas such as preparing clinical trials.

Veeva Systems might see strong adoption of this new launch next year, and over the medium term, it's yet another tool that makes it one of the best choices in its niche of the cloud market. These are all reasons why Veeva Systems' stock is a buy.

Prosper Junior Bakiny has positions in Eli Lilly. The Motley Fool has positions in and recommends Merck, Netflix, and Veeva Systems. The Motley Fool has a disclosure policy.