Three Undervalued Growth Stocks to Consider in October 2026

Investors seeking growth stocks in October 2026 face a challenging landscape with rising valuations and record levels in the S&P 500. However, three companies stand out for their strong fundamentals and growth potential: Amazon (NASDAQ:AMZN), AbbVie (NYSE:ABBV), and Netflix (NASDAQ:NFLX).

Amazon, with a market cap of around $2.8 trillion, has seen modest gains of 11% this year, trailing the S&P 500's 14% rise. Despite its high valuation, its price-to-earnings (P/E) multiple is only 20, which is relatively low compared to past premiums. The company is heavily investing in artificial intelligence (AI), developing its own chips, and advancing its robotaxi business, Zoox. This makes Amazon an attractive buy with potential upside.

AbbVie, a healthcare sector leader, has adapted well despite past concerns over patent expirations on its leading drug, Humira. The company's diversified operations and acquisitions have helped offset revenue losses. While its trailing P/E multiple is 75, the forward P/E is just 16, making it appear more affordable compared to the S&P 500 average of 20.

Netflix, down 27% this year, offers another compelling opportunity. Despite market concerns over future growth, its revenue rose by 13% in the most recent quarter, with projections of $51 billion for the full year. The stock trades at 22 times trailing earnings and a forward P/E of 19, suggesting the sell-off may be unwarranted.