10 Best Ben Graham Heatmap Picks for November 2025
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Market Overview & Selection Criteria
The current market landscape is marked by volatility and sector rotation, with investors seeking resilient growth and defensive value across industries. Our selection methodology leverages ValueSense’s proprietary intrinsic value modeling, quality ratings, and fundamental analysis to identify stocks with strong financials, attractive valuations, and sector diversity. Each pick is screened for robust revenue growth, healthy margins, and prudent capital allocation, ensuring a balanced watchlist for educational analysis[1][2].
Featured Stock Analysis
Eli Lilly and Company (LLY)
| Metric | Value |
|---|---|
| Market Cap | $774.8B |
| Quality Rating | 7.7 |
| Intrinsic Value | $245.7 |
| 1Y Return | 4.3% |
| Revenue | $59.4B |
| Free Cash Flow | $9,020.7M |
| Revenue Growth | 45.4% |
| FCF margin | 15.2% |
| Gross margin | 83.0% |
| ROIC | 36.0% |
| Total Debt to Equity | 178.2% |
Investment Thesis
Eli Lilly stands out in the healthcare sector with a market cap of $774.8B and a robust quality rating of 7.7. The company’s intrinsic value is calculated at $245.7, suggesting a focus on long-term value creation. With a 1-year return of 4.3% and revenue of $59.4B, Lilly’s 45.4% revenue growth and 83.0% gross margin highlight its operational excellence. The company’s free cash flow of $9,020.7M and ROIC of 36.0% reinforce its ability to generate shareholder value despite a high total debt to equity ratio of 178.2%.
Key Catalysts
- Strong pipeline of innovative pharmaceuticals
- High revenue growth driven by new drug launches
- Exceptional gross margin and capital efficiency
- Leadership in diabetes and oncology markets
Risk Factors
- Elevated debt levels may impact financial flexibility
- Regulatory risks in drug approval and pricing
- Competitive pressures from generics and biosimilars
Advanced Micro Devices, Inc. (AMD)
| Metric | Value |
|---|---|
| Market Cap | $415.7B |
| Quality Rating | 7.5 |
| Intrinsic Value | $89.4 |
| 1Y Return | 77.8% |
| Revenue | $29.6B |
| Free Cash Flow | $4,043.0M |
| Revenue Growth | 27.2% |
| FCF margin | 13.7% |
| Gross margin | 46.6% |
| ROIC | 4.7% |
| Total Debt to Equity | 6.5% |
Investment Thesis
AMD is a technology leader with a $415.7B market cap and a quality rating of 7.5. Its intrinsic value is $89.4, and the company has delivered a remarkable 77.8% 1-year return. AMD’s $29.6B revenue and 27.2% growth reflect its competitive edge in high-performance computing and graphics. The company maintains a healthy free cash flow of $4,043.0M, a gross margin of 46.6%, and a low total debt to equity of 6.5%, indicating strong balance sheet discipline.
Key Catalysts
- Expansion in AI and data center markets
- Product innovation in CPUs and GPUs
- Strategic partnerships with major cloud providers
- Low leverage supports future investments
Risk Factors
- Intense competition from industry giants
- Cyclical demand in semiconductor markets
- Supply chain disruptions impacting production
The Coca-Cola Company (KO)
| Metric | Value |
|---|---|
| Market Cap | $296.5B |
| Quality Rating | 6.7 |
| Intrinsic Value | $43.6 |
| 1Y Return | 6.3% |
| Revenue | $47.7B |
| Free Cash Flow | $5,570.0M |
| Revenue Growth | 2.8% |
| FCF margin | 11.7% |
| Gross margin | 61.6% |
| ROIC | 33.7% |
| Total Debt to Equity | 142.5% |
Investment Thesis
Coca-Cola, with a $296.5B market cap and a quality rating of 6.7, remains a staple in the consumer staples sector. Its intrinsic value is $43.6, and the company has posted a steady 6.3% 1-year return. Coca-Cola’s $47.7B revenue, 2.8% growth, and 61.6% gross margin underscore its global brand strength and operational efficiency. The company’s free cash flow of $5,570.0M and ROIC of 33.7% support its consistent shareholder returns, despite a high total debt to equity of 142.5%.
Key Catalysts
- Global brand recognition and market penetration
- Diversification into health and wellness beverages
- Strong free cash flow generation
- Resilient demand in economic downturns
Risk Factors
- High debt levels may constrain future growth
- Shifting consumer preferences toward healthier options
- Regulatory risks in key markets
Cisco Systems, Inc. (CSCO)
| Metric | Value |
|---|---|
| Market Cap | $289.5B |
| Quality Rating | 6.6 |
| Intrinsic Value | $78.2 |
| 1Y Return | 34.4% |
| Revenue | $56.7B |
| Free Cash Flow | $13.3B |
| Revenue Growth | 5.3% |
| FCF margin | 23.5% |
| Gross margin | 65.1% |
| ROIC | 13.3% |
| Total Debt to Equity | 63.3% |
Investment Thesis
Cisco is a technology infrastructure giant with a $289.5B market cap and a quality rating of 6.6. Its intrinsic value is $78.2, and the company has achieved a 34.4% 1-year return. Cisco’s $56.7B revenue, 5.3% growth, and 65.1% gross margin reflect its dominance in networking solutions. The company boasts a strong free cash flow of $13.3B, a 23.5% FCF margin, and a manageable total debt to equity of 63.3%.
Key Catalysts
- Expansion in cloud and security solutions
- Recurring revenue from software subscriptions
- High free cash flow supports innovation
- Strategic acquisitions drive growth
Risk Factors
- Competition from emerging tech firms
- Rapid technology shifts requiring constant innovation
- Exposure to global supply chain risks
International Business Machines Corporation (IBM)
| Metric | Value |
|---|---|
| Market Cap | $287.1B |
| Quality Rating | 6.6 |
| Intrinsic Value | $197.5 |
| 1Y Return | 50.9% |
| Revenue | $65.4B |
| Free Cash Flow | $13.0B |
| Revenue Growth | 4.5% |
| FCF margin | 19.9% |
| Gross margin | 58.2% |
| ROIC | 9.6% |
| Total Debt to Equity | 237.8% |
Investment Thesis
IBM, with a $287.1B market cap and a quality rating of 6.6, is a legacy technology provider transitioning to cloud and AI. Its intrinsic value is $197.5, and the company has delivered a 50.9% 1-year return. IBM’s $65.4B revenue, 4.5% growth, and 58.2% gross margin highlight its stable business model. The company’s free cash flow of $13.0B and ROIC of 9.6% support ongoing transformation, though total debt to equity is elevated at 237.8%.
Key Catalysts
- Growth in hybrid cloud and AI services
- Strategic divestitures and acquisitions
- Strong free cash flow for reinvestment
- Global enterprise customer base
Risk Factors
- High leverage may limit flexibility
- Execution risk in transformation strategy
- Competitive threats from cloud-native firms
Micron Technology, Inc. (MU)
| Metric | Value |
|---|---|
| Market Cap | $249.7B |
| Quality Rating | 8.4 |
| Intrinsic Value | $368.6 |
| 1Y Return | 124.8% |
| Revenue | $37.4B |
| Free Cash Flow | $8,929.0M |
| Revenue Growth | 48.9% |
| FCF margin | 23.9% |
| Gross margin | 39.8% |
| ROIC | 15.9% |
| Total Debt to Equity | 27.2% |
Investment Thesis
Micron leads in memory and storage solutions with a $249.7B market cap and the highest quality rating of 8.4. Its intrinsic value is $368.6, and the company has posted an impressive 124.8% 1-year return. Micron’s $37.4B revenue, 48.9% growth, and 39.8% gross margin reflect strong demand for advanced memory products. The company’s free cash flow of $8,929.0M and ROIC of 15.9% highlight operational efficiency, with a low total debt to equity of 27.2%.
Key Catalysts
- Surging demand for AI and cloud memory
- Technological leadership in DRAM and NAND
- High revenue and free cash flow growth
- Low leverage supports strategic investments
Risk Factors
- Cyclical nature of semiconductor industry
- Pricing pressure from global competitors
- Supply chain volatility
Salesforce, Inc. (CRM)
| Metric | Value |
|---|---|
| Market Cap | $249.0B |
| Quality Rating | 6.9 |
| Intrinsic Value | $270.9 |
| 1Y Return | -10.5% |
| Revenue | $39.5B |
| Free Cash Flow | $12.5B |
| Revenue Growth | 8.3% |
| FCF margin | 31.6% |
| Gross margin | 77.6% |
| ROIC | 10.8% |
| Total Debt to Equity | 4.6% |
Investment Thesis
Salesforce, a leader in cloud-based CRM solutions, has a $249.0B market cap and a quality rating of 6.9. Its intrinsic value is $270.9, but the company has experienced a -10.5% 1-year return, reflecting sector headwinds. Salesforce’s $39.5B revenue, 8.3% growth, and 77.6% gross margin underscore its market leadership. The company’s $12.5B free cash flow and 31.6% FCF margin support ongoing innovation, with a low total debt to equity of 4.6%.
Key Catalysts
- Expansion in enterprise cloud applications
- High gross and free cash flow margins
- Strategic acquisitions in AI and analytics
- Low leverage enables growth investments
Risk Factors
- Recent share price underperformance
- Intense competition in SaaS markets
- Integration risks from acquisitions
Novartis AG (NVS)
| Metric | Value |
|---|---|
| Market Cap | $241.1B |
| Quality Rating | 6.1 |
| Intrinsic Value | $137.7 |
| 1Y Return | 14.2% |
| Revenue | $55.5B |
| Free Cash Flow | $11.3B |
| Revenue Growth | 12.5% |
| FCF margin | 20.4% |
| Gross margin | 37.2% |
| ROIC | 19.1% |
| Total Debt to Equity | 71.6% |
Investment Thesis
Novartis is a global healthcare leader with a $241.1B market cap and a quality rating of 6.1. Its intrinsic value is $137.7, and the company has achieved a 14.2% 1-year return. Novartis’s $55.5B revenue, 12.5% growth, and 37.2% gross margin reflect its diversified pharmaceutical portfolio. The company’s $11.3B free cash flow and ROIC of 19.1% support ongoing R&D, with a total debt to equity of 71.6%.
Key Catalysts
- Strong pipeline of innovative therapies
- Expansion in emerging markets
- Healthy free cash flow and ROIC
- Focus on specialty and generic drugs
Risk Factors
- Regulatory risks in global markets
- Patent expirations impacting revenue
- Competition from biosimilars
RTX Corporation (RTX)
| Metric | Value |
|---|---|
| Market Cap | $239.2B |
| Quality Rating | 6.3 |
| Intrinsic Value | $137.6 |
| 1Y Return | 49.1% |
| Revenue | $86.0B |
| Free Cash Flow | $5,237.0M |
| Revenue Growth | 8.8% |
| FCF margin | 6.1% |
| Gross margin | 20.1% |
| ROIC | 5.4% |
| Total Debt to Equity | 61.3% |
Investment Thesis
RTX is a major player in aerospace and defense with a $239.2B market cap and a quality rating of 6.3. Its intrinsic value is $137.6, and the company has posted a 49.1% 1-year return. RTX’s $86.0B revenue, 8.8% growth, and 20.1% gross margin reflect its scale and resilience. The company’s $5,237.0M free cash flow and ROIC of 5.4% support ongoing innovation, with a total debt to equity of 61.3%.
Key Catalysts
- Strong defense and aerospace order book
- Innovation in advanced technologies
- Resilient demand from government contracts
- Moderate leverage supports growth
Risk Factors
- Exposure to geopolitical risks
- Cyclical demand in commercial aerospace
- Margin pressure from cost inflation
Philip Morris International Inc. (PM)
| Metric | Value |
|---|---|
| Market Cap | $224.7B |
| Quality Rating | 6.9 |
| Intrinsic Value | $146.9 |
| 1Y Return | 10.0% |
| Revenue | $39.9B |
| Free Cash Flow | $10.1B |
| Revenue Growth | 7.5% |
| FCF margin | 25.3% |
| Gross margin | 66.3% |
| ROIC | 25.0% |
| Total Debt to Equity | (557.5%) |
Investment Thesis
Philip Morris International, with a $224.7B market cap and a quality rating of 6.9, is a global leader in tobacco and reduced-risk products. Its intrinsic value is $146.9, and the company has delivered a 10.0% 1-year return. Philip Morris’s $39.9B revenue, 7.5% growth, and 66.3% gross margin highlight its profitability. The company’s $10.1B free cash flow and ROIC of 25.0% support shareholder returns, though total debt to equity is notably high at 557.5%.
Key Catalysts
- Growth in reduced-risk and smoke-free products
- Strong global distribution network
- High free cash flow and gross margin
- Focus on innovation and product diversification
Risk Factors
- Regulatory risks and litigation exposure
- Declining cigarette volumes in mature markets
- High leverage increases financial risk
Portfolio Diversification Insights
This watchlist spans technology, healthcare, consumer staples, industrials, and commodities, providing sector diversification to mitigate risk. Technology stocks (AMD, CSCO, IBM, MU, CRM) offer growth potential, while healthcare (LLY, NVS) and consumer staples (KO, PM) add defensive stability. Aerospace (RTX) further diversifies exposure, balancing cyclical and secular trends.
Market Timing & Entry Strategies
Entry strategies should consider sector rotation, earnings cycles, and macroeconomic conditions. Investors may analyze historical performance, valuation metrics, and upcoming catalysts using ValueSense’s charting and backtesting tools to identify optimal entry points. Staggered entry and dollar-cost averaging can help manage volatility and reduce timing risk[1][2].
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!
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FAQ Section
Q1: How were these stocks selected?
Stocks were chosen using ValueSense’s intrinsic value modeling, quality ratings, and fundamental analysis, focusing on financial strength, growth potential, and sector diversification[1][2].
Q2: What's the best stock from this list?
Each stock offers unique strengths; Micron Technology (MU) currently has the highest quality rating and 1-year return, but suitability depends on individual investment goals and risk tolerance.
Q3: Should I buy all these stocks or diversify?
Diversification across sectors and industries is recommended for risk management; this watchlist provides a balanced mix of growth and defensive stocks for educational analysis.
Q4: What are the biggest risks with these picks?
Risks include sector-specific challenges, high debt levels, regulatory changes, and market volatility. Each stock’s risk profile is detailed in its individual analysis.
Q5: When is the best time to invest in these stocks?
Optimal timing depends on market conditions, earnings cycles, and individual financial goals. ValueSense’s charting and backtesting tools can help analyze historical trends and identify entry points[1][2].