Why Growth Stocks Still Matter
Growth stocks are often the engines of wealth creation in equity markets. These are companies with the potential to increase revenues, earnings, and market share at a faster pace than the broader economy. For long-term investors, finding the right mix of growth names can significantly outperform traditional benchmarks like the S&P 500.
But not all growth stocks are created equal. Some lack durability, while others face intense competition or cyclical risks. The key lies in identifying businesses with scalable operations, strong financials, and exposure to megatrends such as artificial intelligence, aerospace innovation, and cloud computing.
With October presenting new opportunities, here are three standout growth stocks that are attracting attention from Wall Street analysts and investors alike.
1. Karman Holdings (KRMN): A Rising Force in Aerospace and Defense
Karman Holdings (NASDAQ: KRMN) has quickly transformed from a newcomer to a major contender in aerospace and defense. The company, which went public earlier this year, has already skyrocketed 204% from its $22 IPO price.
Strong Growth Across All Segments
Karman specializes in “mission-critical systems” for hypersonics, missile defense, and space launches. In Q2, revenue jumped 35% year-over-year to $115.1 million, while adjusted EBITDA rose 29% to $35.3 million. Net earnings per share tripled from the previous year, underscoring the company’s operational strength.
Its backlog of $719 million offers long-term visibility, with growth spread across multiple divisions:
- Hypersonics & Strategic Defense: +22%
- Space & Launch: +39%
- Tactical Missiles & IDS: +46%
This diversified portfolio ensures the company isn’t over-reliant on a single revenue stream.
Wall Street Sees Strong Upside
CEO Anthony Koblinski highlighted new contract wins and index inclusions as factors driving investor confidence. Out of six analysts covering the stock, four rate it a “Strong Buy”, and the Street-high price target of $100 implies nearly 47% upside from current levels.
For investors seeking exposure to the next generation of aerospace and defense innovation, Karman Holdings could be a powerful long-term bet.
2. Alphabet (GOOG, GOOGL): AI-Powered Tech Titan
Alphabet, the parent company of Google, remains one of the most compelling tech growth stories. Despite its massive size — with a market capitalization nearing $3 trillion — the company continues to outpace the market, gaining 30% year-to-date, well above the Nasdaq’s 15.6% increase.
Revenue Growth Fueled by AI
In Q2, Alphabet posted 14% year-over-year revenue growth to $96.4 billion and an impressive 22% jump in EPS to $2.31. This growth was fueled by robust performance in:
- Search Advertising (+12% to $54.2B)
- YouTube (double-digit growth from subscriptions and ads)
- Google Cloud (+32% to $13.6B, with margins improving to 20.7%)
AI integration is accelerating across all business lines. From AI-driven search results to enterprise cloud tools, Alphabet is embedding artificial intelligence at the core of its operations. The company’s cloud backlog of $106 billion signals strong long-term demand.
Financial Strength and Analyst Confidence
Alphabet ended Q2 with $95 billion in cash and continues to invest heavily in AI and data infrastructure. Wall Street is bullish, with 40 out of 54 analysts rating it a Strong Buy. While the average target price has already been surpassed, the Street-high estimate of $300 suggests 22% upside from current levels.
Alphabet remains a cornerstone growth stock for investors looking to benefit from the AI revolution.
3. Micron Technology (MU): Riding the AI Memory Boom
Micron Technology (NASDAQ: MU) has been one of the biggest beneficiaries of the AI-driven demand surge. Known for its advanced memory and storage solutions, Micron has delivered an 85.5% gain year-to-date, far outpacing the broader market.
Explosive Revenue Growth
Micron closed fiscal 2025 with record-breaking results:
- Revenue: $37.4 billion (+50% YoY)
- Gross Margin: Expanded to 41%
- Data Center Sales: Accounted for 56% of total revenue
- High-Bandwidth Memory (HBM): $2 billion in Q4 sales, establishing leadership in AI memory chips
By collaborating with Nvidia (NVDA) and other hyperscalers, Micron has positioned itself as a key supplier for AI servers and advanced data centers.
Future Expansion
Micron is aggressively expanding manufacturing with new fabs in Idaho, New York, Japan, and Singapore, supported by CHIPS Act funding. Demand drivers include AI-ready PCs, smartphones, and cloud workloads.
Analysts remain bullish: 25 out of 36 rate it a Strong Buy, and the Street-high price target of $200 implies 28% upside.
Growth Stocks Comparison: Karman Holdings, Alphabet & Micron Technology
| Stock | Market Cap | YTD Performance | Recent Revenue Growth | Analyst Rating | Upside Potential (Street-High Target) |
|---|---|---|---|---|---|
| Karman Holdings (KRMN) | $5.6B | +204% since IPO | +35% YoY (Q2 2025) | Strong Buy | +47% (Target: $100) |
| Alphabet (GOOG, GOOGL) | $2.99T | +30% YTD | +14% YoY (Q2 2025) | Strong Buy | +22% (Target: $300) |
| Micron Technology (MU) | $181B | +85.5% YTD | +50% YoY (FY 2025) | Strong Buy | +28% (Target: $200) |
Final Thoughts: Growth Stocks to Watch This October
October brings with it both volatility and opportunity, but these three companies — Karman Holdings, Alphabet, and Micron Technology — are well-positioned to thrive. Each one benefits from powerful secular trends:
- Karman Holdings: Defense and space innovation
- Alphabet: AI and cloud dominance
- Micron Technology: Explosive demand for AI memory
While growth stocks come with risks such as valuation pressures and competitive threats, these names have proven fundamentals, strong financials, and clear long-term catalysts.
For investors looking to build or expand a portfolio this October, these three stocks stand out as compelling buys.