3 fantastic ASX stocks I would buy with $10,000 in October

Here's why I think these shares could be great picks for Aussie investors next month.

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Key points

  • A fast-fashion jewellery retailer with a strong international presence is expanding rapidly, especially in the US market, and launching a new brand in the UK.
  • A homegrown software company transitioning to a cloud-based model shows strong recurring revenue growth, positioning it as a reliable long-term investment with ambitions to double revenue every five years.
  • A leading accounting software provider with a large subscriber base has significant growth potential in underpenetrated cloud accounting markets, with a vast total addressable market globally.

October is almost here, and for investors with fresh cash to deploy, the ASX offers plenty of opportunities.

The trick is to focus on quality businesses with competitive advantages, strong growth runways, and management teams you can trust.

With that in mind, with $10,000 to invest, I would be spreading it across the following fantastic ASX shares:

Lovisa Holdings Ltd (ASX: LOV)

Lovisa has been one of the quiet achievers on the ASX over the past decade. The fast-fashion jewellery retailer has grown from a small domestic chain into a global powerhouse with stores across Europe, North America, Africa, and Asia. Its affordable price point and ability to rapidly adapt to changing trends have made it hugely popular with younger shoppers.

Despite its size, its international rollout is still in its early stages, particularly in the US, where Lovisa has barely scratched the surface of its potential. For example, in FY 2025, the company ended the period with 229 stores in the US. This is only modestly higher than the 182 stores it has operating in Australia despite its significantly larger population. In addition, the company is rolling out a new brand called Jewells across the UK. This could be another long term growth opportunity for the company.

TechnologyOne Ltd (ASX: TNE)

Another ASX stock I would buy with $10,000 is TechnologyOne. It is a homegrown software success story. The company provides enterprise resource planning (ERP) solutions to governments, universities, and corporations. Its highly successful shift from traditional licensing to a cloud-based model has transformed the business into a recurring revenue machine.

Annual recurring revenue (ARR) continues to grow at a double-digit pace, supported by strong customer retention and an expanding pipeline. Its ARR recently hit $500 million and is forecast to reach $1 billion by the end of the decade. After which, management is aiming to double it every five years.

In light of this, I think TechnologyOne could be one of the ASX's most reliable compounders and a great long term pick.

Xero Ltd (ASX: XRO)

Lastly, Xero could be another great ASX stock to buy with the $10,000. Its leading accounting software is helping small and medium-sized businesses manage their finances more efficiently. With more than 4 million subscribers globally, the company has built a strong competitive position thanks to its user-friendly design and deep integrations with banking and financial systems.

Importantly, Xero still has a long growth runway. Cloud accounting penetration remains relatively low in many of its markets, giving the company opportunities to keep adding new customers while increasing revenue per user through premium features. In fact, it is estimated that its total addressable market (TAM) is 100 million small businesses globally.

Motley Fool contributor James Mickleboro has positions in Lovisa, Technology One, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Technology One, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Lovisa and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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