10 Best Great Momentum Stocks for January 2026
Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io
Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.
Market Overview & Selection Criteria
In the current market environment, investors are seeking undervalued stocks with strong quality ratings amid volatile conditions across technology, healthcare, consumer goods, and emerging sectors. These 10 best stock picks were selected using ValueSense's advanced stock screener methodology, focusing exclusively on companies with a perfect Quality rating of 10.0. Selection criteria emphasize intrinsic value comparisons, revenue growth trends, profitability metrics like FCF margins and ROIC, and overall financial health via debt-to-equity ratios. This watchlist highlights diverse investment opportunities where intrinsic value suggests potential undervaluation, providing educational analysis for retail investors building a stock watchlist. Data reflects ValueSense's pre-validated metrics, ideal for spotting best value stocks in a mixed momentum landscape.
Featured Stock Analysis
Stock #1: Workday, Inc. (WDAY)
| Metric | Value |
|---|---|
| Market Cap | $54.4B |
| Quality Rating | 10.0 |
| Intrinsic Value | $218.6 |
| 1Y Return | -18.3% |
| Revenue | $9,216.0M |
| Free Cash Flow | $2,585.0M |
| Revenue Growth | 3.4% |
| FCF margin | 28.0% |
| Gross margin | 77.5% |
| ROIC | 8.1% |
| Total Debt to Equity | 42.7% |
Investment Thesis
Workday, Inc. (WDAY) stands out with a Market Cap of $54.4B and a stellar Quality rating of 10.0, positioning it as a leader in enterprise cloud applications. Its Intrinsic value of $218.6 indicates significant undervaluation potential relative to current market dynamics, supported by robust Revenue of $9,216.0M and Free Cash Flow of $2,585.0M. Despite a 1Y Return of -18.3%, the company's Revenue growth of 3.4% pairs with an impressive FCF margin of 28.0% and Gross margin of 77.5%, reflecting operational efficiency. ROIC at 8.1% and manageable Total Debt to Equity of 42.7% underscore financial stability, making WDAY a compelling case for long-term value analysis in the technology sector.
This profile highlights Workday's strength in generating high-margin cash flows, ideal for investors examining WDAY analysis within undervalued growth stocks.
Key Catalysts
- Exceptional FCF margin of 28.0% signals strong cash generation capabilities
- High Gross margin of 77.5% demonstrates pricing power in SaaS markets
- Solid ROIC of 8.1% indicates efficient capital deployment
- Moderate Total Debt to Equity of 42.7% supports balance sheet flexibility
Risk Factors
- Modest Revenue growth of 3.4% may lag high-growth peers
- Negative 1Y Return of -18.3% reflects recent market pressures
Stock #2: Haleon plc (HLN)
| Metric | Value |
|---|---|
| Market Cap | $45.3B |
| Quality Rating | 10.0 |
| Intrinsic Value | $13.0 |
| 1Y Return | 5.9% |
| Revenue | £13.8B |
| Free Cash Flow | £1,396.5M |
| Revenue Growth | 22.2% |
| FCF margin | 10.1% |
| Gross margin | 63.2% |
| ROIC | 8.4% |
| Total Debt to Equity | 52.8% |
Investment Thesis
Haleon plc (HLN), with a Market Cap of $45.3B and Quality rating of 10.0, offers stability in consumer healthcare. The Intrinsic value of $13.0 suggests undervaluation, backed by Revenue of £13.8B and Free Cash Flow of £1,396.5M. A positive 1Y Return of 5.9% contrasts with peers, driven by Revenue growth of 22.2% and FCF margin of 10.1%. Gross margin at 63.2%, ROIC of 8.4%, and Total Debt to Equity of 52.8% provide a balanced financial picture, positioning HLN as a defensive play in healthcare stock picks.
Haleon's growth trajectory and cash flow positivity make it a key contender in diversified stock watchlists.
Key Catalysts
- Strong Revenue growth of 22.2% fuels expansion in core markets
- Healthy FCF margin of 10.1% ensures reinvestment potential
- Competitive ROIC of 8.4% reflects asset efficiency
- Positive 1Y Return of 5.9% shows market resilience
Risk Factors
- Elevated Total Debt to Equity of 52.8% warrants monitoring
- Currency exposure from £-denominated metrics adds volatility
Stock #3: Ascentage Pharma Group International (AAPG)
| Metric | Value |
|---|---|
| Market Cap | $8,967.4M |
| Quality Rating | 10.0 |
| Intrinsic Value | $1.0 |
| 1Y Return | 51.7% |
| Revenue | CN¥802.5M |
| Free Cash Flow | CN¥49.8M |
| Revenue Growth | 63.4% |
| FCF margin | 6.2% |
| Gross margin | 94.6% |
| ROIC | (106.6%) |
| Total Debt to Equity | 253.9% |
Investment Thesis
Ascentage Pharma Group International (AAPG) features a Market Cap of $8,967.4M and Quality rating of 10.0, highlighting biotech potential. Intrinsic value at $1.0 pairs with explosive 1Y Return of 51.7% and Revenue of CN¥802.5M growing 63.4%. Free Cash Flow of CN¥49.8M yields a FCF margin of 6.2%, with standout Gross margin of 94.6%. However, ROIC of 106.6% and high Total Debt to Equity of 253.9% signal early-stage risks, offering educational insights into high-growth biopharma investment opportunities.
AAPG's revenue surge positions it among best value stocks in healthcare innovation.
Key Catalysts
- Exceptional Revenue growth of 63.4% drives biotech momentum
- High Gross margin of 94.6% indicates R&D efficiency
- Strong 1Y Return of 51.7% reflects investor enthusiasm
- Positive Free Cash Flow of CN¥49.8M supports operations
Risk Factors
- Negative ROIC of 106.6% highlights capital inefficiency
- Very high Total Debt to Equity of 253.9% increases leverage risk
Stock #4: Kontoor Brands, Inc. (KTB)
| Metric | Value |
|---|---|
| Market Cap | $3,398.4M |
| Quality Rating | 10.0 |
| Intrinsic Value | $72.7 |
| 1Y Return | -27.1% |
| Revenue | $2,987.6M |
| Free Cash Flow | ($13.2M) |
| Revenue Growth | 14.5% |
| FCF margin | (0.4%) |
| Gross margin | 46.2% |
| ROIC | 11.5% |
| Total Debt to Equity | 283.3% |
Investment Thesis
Kontoor Brands, Inc. (KTB) boasts a Market Cap of $3,398.4M and Quality rating of 10.0 in apparel. Intrinsic value of $72.7 suggests upside, with Revenue of $2,987.6M up 14.5%, though Free Cash Flow is $13.2M for a FCF margin of 0.4%. Gross margin of 46.2%, top ROIC of 11.5%, and Total Debt to Equity of 283.3% frame its profile amid a -27.1% 1Y Return, ideal for analyzing cyclical consumer plays.
KTB's ROIC strength merits attention in undervalued stocks to buy discussions.
Key Catalysts
- Solid Revenue growth of 14.5% supports brand expansion
- Leading ROIC of 11.5% shows return generation
- Reasonable Gross margin of 46.2% in competitive sector
Risk Factors
- Negative FCF margin of 0.4% pressures liquidity
- High Total Debt to Equity of 283.3% amplifies downturn risks
- Weak 1Y Return of -27.1% indicates market skepticism
Most investors waste time on the wrong metrics. We've spent 10,000+ hours perfecting our value investing engine to find what actually matters.
Want to see what we'll uncover next - before everyone else does?
Find Hidden Gems First!
Stock #5: Rezolve AI PLC (RZLV)
| Metric | Value |
|---|---|
| Market Cap | $667.6M |
| Quality Rating | 10.0 |
| Intrinsic Value | $4.3 |
| 1Y Return | -29.8% |
| Revenue | $6,451.3K |
| Free Cash Flow | ($36.6M) |
| Revenue Growth | N/A |
| FCF margin | (568.0%) |
| Gross margin | 95.4% |
| ROIC | (470.8%) |
| Total Debt to Equity | (248.8%) |
Investment Thesis
Rezolve AI PLC (RZLV), at Market Cap $667.6M with Quality rating 10.0, targets AI commerce. Intrinsic value $4.3 contrasts a -29.8% 1Y Return, with tiny Revenue $6,451.3K and deeply negative Free Cash Flow $36.6M for FCF margin 568.0%. High Gross margin 95.4% and ROIC 470.8% with Total Debt to Equity 248.8% highlight speculative growth, fitting stock picks for AI enthusiasts.
This early-stage profile educates on high-volatility tech opportunities.
Key Catalysts
- Exceptional Gross margin of 95.4% signals software scalability
- AI focus aligns with sector tailwinds
Risk Factors
- Severe FCF margin of 568.0% indicates burn rate
- Negative ROIC 470.8% and 1Y Return -29.8% show execution risks
- Revenue growth N/A adds uncertainty
Stock #6: Magnera Corp. (MAGN)
| Metric | Value |
|---|---|
| Market Cap | $521.0M |
| Quality Rating | 10.0 |
| Intrinsic Value | $88.5 |
| 1Y Return | -20.9% |
| Revenue | $3,356.0M |
| Free Cash Flow | $324.0M |
| Revenue Growth | 5.7% |
| FCF margin | 9.7% |
| Gross margin | 4.7% |
| ROIC | 3.6% |
| Total Debt to Equity | 189.4% |
Investment Thesis
Magnera Corp. (MAGN) has Market Cap $521.0M and Quality rating 10.0, with Intrinsic value $88.5 signaling value. Revenue $3,356.0M grows 5.7%, Free Cash Flow $324.0M yields FCF margin 9.7%, but low Gross margin 4.7%, ROIC 3.6%, and Total Debt to Equity 189.4% follow a -20.9% 1Y Return. Suited for industrial value analysis.
Key Catalysts
- Positive FCF margin 9.7% and Free Cash Flow $324.0M
- Steady Revenue growth 5.7%
Risk Factors
- Low Gross margin 4.7% pressures profitability
- High Total Debt to Equity 189.4%
- Negative 1Y Return -20.9%
Stock #7: Waldencast plc (WALD)
| Metric | Value |
|---|---|
| Market Cap | $204.7M |
| Quality Rating | 10.0 |
| Intrinsic Value | $28.6 |
| 1Y Return | -54.0% |
| Revenue | $539.1M |
| Free Cash Flow | ($33.4M) |
| Revenue Growth | 67.3% |
| FCF margin | (6.2%) |
| Gross margin | 52.8% |
| ROIC | (12.0%) |
| Total Debt to Equity | 35.2% |
Investment Thesis
Waldencast plc (WALD), Market Cap $204.7M, Quality rating 10.0, shows Intrinsic value $28.6. Revenue $539.1M surges 67.3%, but Free Cash Flow $33.4M gives FCF margin 6.2%, Gross margin 52.8%, ROIC 12.0%, Total Debt to Equity 35.2%, and -54.0% 1Y Return. Beauty sector growth story.
Key Catalysts
- Robust Revenue growth 67.3%
- Solid Gross margin 52.8%
Risk Factors
- Negative FCF and ROIC 12.0%
- Sharp 1Y Return decline -54.0%
Stock #8: SOS Limited (SOS)
| Metric | Value |
|---|---|
| Market Cap | $10.0M |
| Quality Rating | 10.0 |
| Intrinsic Value | $199.3 |
| 1Y Return | -78.6% |
| Revenue | $260.5M |
| Free Cash Flow | ($240.4B) |
| Revenue Growth | 89.4% |
| FCF margin | (92,273.1%) |
| Gross margin | 1.3% |
| ROIC | (68.8%) |
| Total Debt to Equity | 0.0% |
Investment Thesis
SOS Limited (SOS), micro-cap Market Cap $10.0M, Quality rating 10.0, has extreme Intrinsic value $199.3. Revenue $260.5M up 89.4%, but Free Cash Flow $240.4B yields FCF margin -92,273.1%, low Gross margin 1.3%, ROIC 68.8%, no debt. High-risk crypto/data play post -78.6% 1Y Return.
Key Catalysts
- Explosive Revenue growth 89.4%
- Zero Total Debt to Equity
Risk Factors
- Catastrophic FCF margin and ROIC
- Severe 1Y Return -78.6%
Stock #9: ZOOZ Power Limited (ZOOZ)
| Metric | Value |
|---|---|
| Market Cap | $5,312.6K |
| Quality Rating | 10.0 |
| Intrinsic Value | $1.2 |
| 1Y Return | -79.9% |
| Revenue | $1,148.7K |
| Free Cash Flow | ($14.6M) |
| Revenue Growth | 11.6% |
| FCF margin | (1,271.5%) |
| Gross margin | (235.4%) |
| ROIC | (770.7%) |
| Total Debt to Equity | (2,708.2%) |
Investment Thesis
ZOOZ Power Limited (ZOOZ), tiny Market Cap $5,312.6K, Quality rating 10.0, Intrinsic value $1.2. Revenue $1,148.7K up 11.6%, Free Cash Flow $14.6M for FCF margin -1,271.5%, negative Gross margin -235.4%, ROIC -770.7%, Total Debt to Equity -2,708.2%, -79.9% 1Y Return. Energy storage speculative.
Key Catalysts
- Revenue growth 11.6% in niche market
Risk Factors
- Negative margins and ROIC extremes
- Plunging 1Y Return -79.9%
Stock #10: X3 Holdings Co Ltd. (XTKG)
| Metric | Value |
|---|---|
| Market Cap | $272.5K |
| Quality Rating | 10.0 |
| Intrinsic Value | $116.6K |
| 1Y Return | -71.7% |
| Revenue | $12.1M |
| Free Cash Flow | ($3,710.9K) |
| Revenue Growth | (37.4%) |
| FCF margin | (30.7%) |
| Gross margin | 12.8% |
| ROIC | (324.4%) |
| Total Debt to Equity | 8.8% |
Investment Thesis
X3 Holdings Co Ltd. (XTKG), Market Cap $272.5K, Quality rating 10.0, outlier Intrinsic value $116.6K. Revenue $12.1M down 37.4%, Free Cash Flow -$3,710.9K FCF margin -30.7%, Gross margin 12.8%, ROIC -324.4%, low debt 8.8%, -71.7% 1Y Return. Micro-cap turnaround candidate.
Key Catalysts
- Low Total Debt to Equity 8.8%
Risk Factors
- Revenue decline 37.4%
- Negative profitability metrics
Portfolio Diversification Insights
This stock watchlist spans technology (WDAY, RZLV), healthcare (HLN, AAPG), consumer (KTB, WALD, MAGN), and high-risk micro-caps (SOS, ZOOZ, XTKG), offering sector allocation balance. Larger caps like WDAY and HLN provide stability with positive FCF, while growth names like AAPG and WALD add momentum. Pair high-ROIC picks (KTB) with low-debt plays (SOS) for risk spread; limit micro-caps to 10-20% allocation to mitigate volatility. Cross-references show revenue growers (AAPG, WALD, SOS) complement steady earners (WDAY, HLN), enhancing portfolio diversification in investment ideas.
Market Timing & Entry Strategies
Consider entry during sector rotations favoring undervalued stocks, such as post-earnings dips for WDAY/HLN or biotech rallies for AAPG. Monitor intrinsic value gaps widening on pullbacks; use dollar-cost averaging for volatile micro-caps like SOS/ZOOZ. Track revenue growth inflection points (e.g., WALD's 67.3%) and ROIC improvements. Position sizing: 20-30% in top quality large-caps, scale into catalysts like AAPG's 63.4% growth. Educational timing aligns with ValueSense screeners for momentum shifts in top stocks to buy now.
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!
More Articles You Might Like
- Nelson Peltz - Trian Fund Management Portfolio Q3'2025: Top Holdings & Recent Changes
- Principles for Dealing with the Changing World Order by Ray Dalio
- The Ascent of Money by Niall Ferguson
- Principles for Navigating Big Debt Crises by Ray Dalio
- Influence: The Psychology of Persuasion by Robert B. Cialdini Ph.D.
FAQ Section
How were these stocks selected?
These 10 best stock picks were filtered via ValueSense criteria emphasizing Quality rating 10.0, intrinsic value potential, and key metrics like revenue growth and ROIC for balanced stock watchlist coverage.
What's the best stock from this list?
Workday (WDAY) and Haleon (HLN) stand out for large-cap stability, positive FCF, and strong margins; compare via WDAY analysis or HLN analysis for personal fit among investment opportunities.
Should I buy all these stocks or diversify?
Diversify across sectors like tech (WDAY), healthcare (AAPG), and consumer (KTB) to manage risks; allocate based on market cap size for optimal portfolio diversification in best value stocks.
What are the biggest risks with these picks?
Key concerns include high debt (AAPG, KTB), negative FCF/ROIC (RZLV, SOS, ZOOZ), and 1Y declines; micro-caps like XTKG amplify volatility in this stock picks collection.
When is the best time to invest in these stocks?
Target entries on intrinsic value expansions, growth catalyst confirmations (e.g., AAPG revenue), or market dips; use ValueSense tools for timing undervalued stocks to buy.