10 Best High Growth Stocks With Great Momentum 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 seek undervalued stocks with strong quality ratings amid volatile conditions across technology, healthcare, consumer goods, and emerging sectors. ValueSense's proprietary screening methodology identifies these 10 best stock picks by prioritizing companies with a perfect Quality rating of 10.0, focusing on intrinsic value comparisons, revenue growth trends, and key financial metrics like ROIC, FCF margins, and debt levels. Stocks were selected from ValueSense data emphasizing high-quality businesses trading below their calculated intrinsic values, offering educational insights into potential value opportunities. This watchlist spans large-cap stability to small-cap growth, providing a diversified stock picks overview for retail investors analyzing undervalued stocks to buy.
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, reflecting robust financial health in the enterprise software space. Its Intrinsic value of $218.6 suggests significant undervaluation potential, supported by strong Revenue of $9,216.0M and impressive Free Cash Flow of $2,585.0M, yielding a healthy FCF margin of 28.0%. Despite a 1Y Return of -18.3%, modest Revenue growth of 3.4% pairs with exceptional Gross margin of 77.5% and ROIC of 8.1%, indicating efficient capital use and profitability in cloud-based HR and finance solutions. Total Debt to Equity at 42.7% remains manageable, positioning WDAY as a high-quality pick for value analysis.
This analysis highlights WDAY's capacity to generate substantial free cash flow relative to revenue, making it a compelling case study for investors examining sustainable business models in technology.
Key Catalysts
- Exceptional Gross margin 77.5% driving profitability in SaaS operations
- Strong FCF margin 28.0% supporting reinvestment and shareholder returns
- Solid ROIC 8.1% demonstrating efficient capital allocation
Risk Factors
- Modest Revenue growth 3.4% amid competitive enterprise software market
- Negative 1Y Return -18.3% reflecting short-term 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, operates in consumer healthcare, showing Intrinsic value at $13.0. Revenue stands at £13.8B with Free Cash Flow of £1,396.5M and robust Revenue growth of 22.2%, alongside a FCF margin of 10.1%. Gross margin of 63.2% and ROIC of 8.4% underscore operational strength, while a positive 1Y Return of 5.9% adds appeal. Total Debt to Equity at 52.8% is balanced for the sector, offering educational value in analyzing stable growth in everyday health products.
HLN's metrics illustrate a business generating consistent cash flows with accelerating growth, ideal for stock watchlist diversification.
Key Catalysts
- Strong Revenue growth 22.2% in consumer healthcare demand
- Healthy Gross margin 63.2% and ROIC 8.4% for profitability
- Positive 1Y Return 5.9% signaling market resilience
Risk Factors
- Elevated Total Debt to Equity 52.8% requiring cash flow monitoring
- Currency exposure from £-denominated financials
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, with Intrinsic value at $1.0 in the biotech sector. Explosive Revenue growth of 63.4% on Revenue of CN¥802.5M pairs with Free Cash Flow of CN¥49.8M and FCF margin of 6.2%. Exceptional Gross margin of 94.6% shines, despite negative ROIC of 106.6% and high Total Debt to Equity of 253.9%. A strong 1Y Return of 51.7% highlights momentum in pharmaceutical innovation.
This profile suits analysis of high-growth biotechs where top-line expansion offsets early-stage inefficiencies.
Key Catalysts
- Exceptional Revenue growth 63.4% from pipeline advancements
- High Gross margin 94.6% indicating R&D efficiency
- Impressive 1Y Return 51.7% on positive momentum
Risk Factors
- Negative ROIC -106.6% signaling capital intensity
- Very high Total Debt to Equity 253.9% amplifying leverage risks
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) has a Market Cap of $3,398.4M and Quality rating of 10.0, with Intrinsic value of $72.7 in apparel. Revenue of $2,987.6M shows Revenue growth of 14.5%, but Free Cash Flow is negative at $13.2M with FCF margin of 0.4%. Gross margin of 46.2% and strong ROIC of 11.5% provide positives, offset by Total Debt to Equity of 283.3% and 1Y Return of -27.1%.
KTB offers insights into consumer cyclical recovery plays with solid returns on invested capital.
Key Catalysts
- Respectable Revenue growth 14.5% in brand apparel
- Strong ROIC 11.5% for operational efficiency
- Decent Gross margin 46.2% supporting margins
Risk Factors
- Negative Free Cash Flow and FCF margin -0.4%
- High Total Debt to Equity 283.3% and poor 1Y Return -27.1%
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), Market Cap $667.6M and Quality rating 10.0, shows Intrinsic value $4.3 in AI technology. Revenue is $6,451.3K with N/A growth, Free Cash Flow $36.6M, and FCF margin -568.0%. High Gross margin 95.4% contrasts ROIC -470.8% and Total Debt to Equity -248.8%, with 1Y Return -29.8%.
Early-stage AI firms like RZLV exemplify high-margin potential amid scaling challenges.
Key Catalysts
- Outstanding Gross margin 95.4% in AI software
- Quality rating 10.0 despite growth phase
Risk Factors
- Severe negative FCF margin -568.0% and ROIC -470.8%
- Negative 1Y Return -29.8% and debt metrics
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) boasts Market Cap $521.0M, Quality rating 10.0, and Intrinsic value $88.5. Revenue $3,356.0M with 5.7% growth, Free Cash Flow $324.0M (FCF margin 9.7%), low Gross margin 4.7%, ROIC 3.6%, Total Debt to Equity 189.4%, and 1Y Return -20.9%.
Analysis reveals a cash-generative industrial with asset-heavy margins.
Key Catalysts
- Positive Free Cash Flow $324.0M and FCF margin 9.7%
- Steady Revenue growth 5.7%
Risk Factors
- Low Gross margin 4.7% and ROIC 3.6%
- High Total Debt to Equity 189.4%
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, Intrinsic value $28.6 in beauty. Revenue $539.1M, Revenue growth 67.3%, Free Cash Flow $33.4M (FCF margin -6.2%), Gross margin 52.8%, ROIC -12.0%, Total Debt to Equity 35.2%, 1Y Return -54.0%.
High growth in consumer beauty with improving margins for study.
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, Intrinsic value $199.3. Revenue $260.5M, Revenue growth 89.4%, massive negative Free Cash Flow -$240.4B (FCF margin -92,273.1%), low Gross margin 1.3%, ROIC -68.8%, no debt, 1Y Return -78.6%.
Extreme growth case with outlier cash flow for advanced analysis.
Key Catalysts
- Explosive Revenue growth 89.4%
- Zero Total Debt to Equity 0.0%
Risk Factors
- Extreme negative Free Cash Flow and FCF margin
- Poor ROIC -68.8% and 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 in energy storage. Revenue $1,148.7K, Revenue growth 11.6%, Free Cash Flow -$14.6M (FCF margin -1,271.5%), negative Gross margin -235.4%, ROIC -770.7%, Total Debt to Equity -2,708.2%, 1Y Return -79.9%.
Pre-revenue energy tech with high-risk profile for speculative study.
Key Catalysts
- Quality rating 10.0 potential
- Modest Revenue growth 11.6%
Risk Factors
- Negative Gross margin -235.4% and extreme ROIC -770.7%
- Severe 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, Revenue growth -37.4%, Free Cash Flow -$3,710.9K (FCF margin -30.7%), Gross margin 12.8%, ROIC -324.4%, low Total Debt to Equity 8.8%, 1Y Return -71.7%.
Micro-cap with turnaround potential in holdings business.
Key Catalysts
- Low Total Debt to Equity 8.8%
- Quality rating 10.0 baseline
Risk Factors
- Declining Revenue growth -37.4%
- Negative ROIC -324.4% and 1Y Return -71.7%
Portfolio Diversification Insights
These 10 best stock picks offer broad sector allocation across technology (WDAY, RZLV), healthcare (HLN, AAPG), consumer (KTB, WALD, MAGN), and high-risk emerging (SOS, ZOOZ, XTKG). Large-caps like WDAY and HLN provide stability with positive FCF, balancing small-caps' growth (e.g., AAPG's 63.4% revenue surge). Pair high-ROIC names (KTB 11.5%) with low-debt (SOS 0.0%) for risk mitigation. This mix supports portfolio diversification analysis, reducing sector-specific volatility while targeting undervaluation themes.
Market Timing & Entry Strategies
Consider positions during sector rotations favoring growth (e.g., post-earnings for AAPG, WALD) or when prices approach intrinsic value floors like WDAY's $218.6. Monitor 1Y Returns for rebound signals in laggards (ZOOZ -79.9%), using dollar-cost averaging for volatile small-caps. Track catalysts like revenue beats; enter on dips below intrinsic values for educational market timing simulations via ValueSense tools.
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 stock picks were filtered using ValueSense criteria emphasizing Quality rating 10.0, intrinsic value upside, and diverse financial metrics like revenue growth and ROIC for comprehensive investment ideas coverage.
What's the best stock from this list?
Workday (WDAY) highlights with strong FCF $2,585.0M and gross margins 77.5%, though analysis depends on individual risk tolerance across this stock watchlist.
Should I buy all these stocks or diversify?
Diversification across sectors like tech and healthcare (e.g., WDAY, HLN, AAPG) reduces risks; this collection aids portfolio construction educational framing rather than all-in allocation.
What are the biggest risks with these picks?
Key concerns include high debt (AAPG 253.9%, KTB 283.3%), negative FCF/ROIC in small-caps (RZLV, ZOOZ), and poor 1Y returns (SOS -78.6%), warranting metric monitoring.
When is the best time to invest in these stocks?
Optimal entry aligns with prices nearing intrinsic values (e.g., MAGN $88.5) or growth catalysts, using ValueSense charting for timing undervalued stocks to buy.