3 of the Best Growth Stocks to Buy in October 2026

The article identifies Amazon, AbbVie and Netflix as growth stocks trading at attractive earnings multiples, while noting that the S&P 500 is at record levels. Amazon is up 11% this year versus about 14% for the S&P 500 and trades at 20 times earnings; AbbVie has a forward P/E of 16 versus roughly 20 for the S&P 500. Netflix is down 27% year to date despite 13% recent-quarter revenue growth and a full-year revenue projection of at least $51 billion, also up about 13% year over year; the author argues its sell-off is unwarranted.

Analysis

The valuation case is less robust than the article implies: all three multiples depend on earnings definitions and a market snapshot that may not be current. Treat the quoted P/Es as hypotheses, not entry signals. For Amazon, investment gains can flatter the denominator; normalize earnings and focus on AWS growth, retail operating profit, and free cash flow after AI infrastructure capex. AI spending only creates upside if cloud demand and pricing convert it into returns—otherwise depreciation and power costs can absorb the benefit. Zoox is long-dated optionality, not a near-term valuation floor.

AbbVie’s Humira replacement is a product-concentration transition, not proof that patent risk is resolved. Track Rinvoq/Skyrizi growth against Humira erosion and distinguish acquisition-related accounting charges from cash costs and leverage. If replacement sales disappoint, the “cheap forward multiple” can re-rate quickly as estimates fall.

Netflix’s near-term test is whether revenue growth translates into durable engagement, pricing/ad monetization, and cash generation—not whether a single quarter remains strong. Churn is a lagging but fast-moving risk; content gaps can matter more when competitors bid for attention and content costs rise.

Over 1–3 months, earnings and guidance revisions matter more than article-level multiples; over 6–18 months, Amazon’s capex returns and AbbVie’s post-Humira mix are the key structural tests. Contrarian point: a lower multiple may reflect denominator quality or decelerating growth, not mispricing. No broad “buy all three” trade is justified without refreshed estimates and prices.

Key Decisions for Investors

• Do not trade the quoted multiples as current. Before entry, refresh prices and consensus, reconcile GAAP versus adjusted earnings, and recalculate valuation on normalized earnings and free cash flow.
• AMZN: consider a staged long only if AWS growth and operating profit support the AI-capex cycle and free cash flow remains resilient. Reassess if capex rises while cloud growth or returns weaken; treat Zoox as unpriced optionality, not a core thesis.
• ABBV: keep on a catalyst watch rather than buying solely on forward P/E. Require evidence that Rinvoq/Skyrizi growth offsets Humira erosion, and monitor cash acquisition costs and leverage; cut the thesis if replacement-product estimates are revised down materially.
• NFLX: favor a measured long only if upcoming results confirm revenue growth alongside engagement or monetization progress. A growth slowdown, weaker guidance, or evidence of rising churn would invalidate the view that the sell-off is excessive; avoid using the article’s stale YTD move as a timing signal.