3 Growth Stocks Positioned to Outperform in 2026 Despite Market Volatility

In an era marked by persistent market volatility and shifting macroeconomic dynamics, investors must anchor their strategies in long-term fundamentals rather than short-term price swings. While near-term uncertainties-ranging from inflationary pressures to geopolitical risks-can distort valuations, companies with durable competitive advantages, robust earnings growth, and strategic agility often emerge as outperformers. Three such stocks-Amazon, Netflix, and Visa-stand out in 2026 as they combine strong financial metrics with transformative business strategies, positioning them to thrive even in turbulent markets.

Amazon: Undervalued Earnings Growth in a High-Growth Ecosystem

Amazon's forward P/E ratio of 27.86 may appear elevated at first glance, but it pales in comparison to the company's projected earnings growth. Analysts forecast total revenue of $790 billion in 2026, a 11% year-over-year increase, driven by Amazon Web Services (AWS) and advertising which is set for growth. AWS, already a 40% operating margin business in 2026, is set for reacceleration in 2026 as AI workloads surge and custom Trainium3 chips reduce costs according to projections. Meanwhile, advertising revenue-now Amazon's fastest-growing segment-is expected to reach $80–85 billion in 2026, contributing meaningfully to margin expansion.

The stock's valuation becomes even more compelling when viewed through the lens of margin progression. North American retail margins hit a record 12% in Q4 2025, and as AWS and advertising grow to a larger share of revenue, consolidated margins are likely to rise further. With a 28% potential upside from current levels according to analysts, Amazon's earnings power story suggests the forward P/E is justified-and possibly undervalued-given its structural growth drivers.

Netflix: Strategic IP Expansion and Diversified Revenue Streams

Netflix's 2025 transformation underscores its shift from a streaming pure-play to a multifaceted entertainment giant. The ad-supported tier, launched in late 2022, now boasts 190 million monthly active viewers, generating $11.5 billion in Q3 revenue while maintaining an operating margin above 31.5%. This pivot has not only diversified revenue but also insulated the company from subscriber churn.

Looking ahead, Netflix's acquisition of Warner Bros. Discovery's film, TV, and streaming assets-valued at $72 billion according to market analysis-could unlock new growth avenues in live sports, gaming, and physical experiences. However, execution risks remain, particularly in integrating complex operations and navigating regulatory hurdles. For now, the company's disciplined content spending and operational efficiency provide a buffer against macroeconomic headwinds, making it a compelling long-term play despite near-term volatility.

Visa: Recession-Resistant Margins and a Durable Business Model

Visa's high-margin, fee-based model exemplifies resilience. As of September 2025, its gross margin stood at 81.53%, a figure that has averaged 80.42% over the past decade. During past recessions, including 2008 and 2020, Visa's gross margin remained above 79%, demonstrating its ability to maintain profitability even in downturns. This durability stems from its global payment network, which benefits from transaction volume growth regardless of economic conditions.

Moreover, Visa's capital allocation strategy-combining reinvestment in digital infrastructure with shareholder returns via buybacks and dividends according to financial analysts-strengthens its appeal. With a 77.31% gross margin according to recent reports, Visa is not only a cash cow but also a defensive asset in a portfolio. Its ability to scale during expansionary cycles and stabilize during contractions makes it a standout in 2026.

Contrasting Fundamentals with Market Sentiment

While these stocks are well-positioned for long-term outperformance, market psychology often amplifies short-term volatility. For example, Amazon's heavy capital expenditures-projected to exceed $125 billion in 2025-could spook investors if AI demand falters. Similarly, Netflix's ambitious expansion may face skepticism amid regulatory scrutiny. Yet, these risks are inherent to growth and innovation, not structural weaknesses.

Visa, on the other hand, faces fewer execution risks but must adapt to the rise of digital wallets and decentralized finance. However, its entrenched network effects and fee-based model provide a moat that rivals struggle to replicate.

Conclusion: A Case for Immediate Action

Investors seeking to navigate 2026's volatility should prioritize companies with strong earnings growth, margin resilience, and strategic adaptability. Amazon's AI-driven AWS and advertising growth, Netflix's diversified IP ecosystem, and Visa's recession-resistant margins collectively form a compelling case for long-term ownership. While short-term price swings are inevitable, the fundamentals of these stocks suggest they are poised to outperform as macroeconomic headwinds ease and growth drivers gain traction.