2 Growth Stocks to Buy in October

Grail’s revenue rose from $93 million in 2023 to $147 million in 2025, and test volume increased 42% year over year to 117,000 in the first half of 2026; analysts expect full-year 2026 revenue of $181 million, up 23%. An FDA panel endorsed premarket approval for Galleri in late September, but the endorsement is non-binding and the NHS England trial missed its primary endpoint; approval could expand access to private insurance and Medicare. Analysts forecast Veeva revenue and EPS CAGRs of 13% and 16%, respectively, from 2025 to 2028, while the article notes elevated Treasury yields near 5.3% as a headwind for growth stocks.

Analysis

The key distinction is evidence risk versus execution risk. GRAIL’s upside depends on converting a regulatory signal into an approvable label, then into payer coverage and repeat clinical use; those are separate gates, and the failed NHS endpoint makes extrapolation from FDA support especially hazardous. Approval could broaden demand, but it would not by itself establish reimbursement, clinical utility across populations, or attractive unit economics. Cash-pay growth is not proof of scalable insured demand. The high sales multiple leaves little room for a delay, restrictive label, or weak coverage decision. Exact Sciences and other early-detection developers could also compete for clinical attention and payer budgets, even if the addressable market expands.

Veeva is the higher-quality exposure, but the article’s pricing-power framing understates migration and procurement risk. Large pharma customers can scrutinize software spend, and any CRM transition or implementation friction could defer bookings; validate renewal rates, customer additions, and cloud-subscription growth before treating the valuation as defensive. Higher real yields remain a multiple headwind for both names, with greater event-driven downside skew in GRAIL.

Over days, rate moves may dominate; over 1–3 months, monitor regulatory clarity and Veeva bookings/guidance; over 6–18 months, payer adoption is the decisive test for GRAIL. The contrarian point: FDA support is not equivalent to a commercial inflection, while Veeva’s steadier growth may still be rate-sensitive at a premium multiple.

Key Decisions for Investors

• Prefer VEEV over GRAL for quality-adjusted exposure; consider a small relative-value position (long VEEV, underweight GRAL) rather than owning both as interchangeable growth stocks. Reassess if Veeva subscription growth or renewals weaken.
• Keep GRAL event risk-sized or on watch rather than chasing the approval narrative. Revisit after the FDA decision and verify the final label, payer coverage, test utilization, and cash runway; a restrictive label or delayed decision would falsify the near-term bull case.
• For VEEV, stage entry on broad multiple compression rather than assuming higher rates are already priced in. Track guidance, bookings, and evidence of customer migration friction; deteriorating growth alongside persistent premium valuation would invalidate the preference.
• Treat any broad rally in high-duration healthcare growth as vulnerable to another rise in Treasury yields. A sustained yield decline would ease valuation pressure, but would not resolve GRAIL’s clinical or reimbursement uncertainties.