10 Best Sports for January 2026
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Market Overview & Selection Criteria
The sports and leisure sectors have shown resilience amid broader market volatility, driven by consumer demand for fitness, entertainment, and outdoor activities. ValueSense selected these 10 stock picks using its proprietary screener, focusing on Quality rating, intrinsic value comparisons, ROIC, revenue growth, and FCF margins to identify undervalued opportunities. Stocks were filtered for strong fundamentals like high gross margins and low debt where possible, emphasizing those with positive 1Y returns and growth potential in sports-related themes. This watchlist highlights diversified ideas across consumer goods, entertainment, and biotech ties to performance enhancement.
Featured Stock Analysis
Stock #1: Garmin Ltd. (GRMN)
| Metric | Value |
|---|---|
| Market Cap | $38.7B |
| Quality Rating | 6.8 |
| Intrinsic Value | $205.5 |
| 1Y Return | -1.0% |
| Revenue | $6,943.1M |
| Free Cash Flow | $907.4M |
| Revenue Growth | 16.6% |
| FCF margin | 13.1% |
| Gross margin | 58.7% |
| ROIC | 30.4% |
| Total Debt to Equity | 1.8% |
Investment Thesis
Garmin Ltd. (GRMN) stands out with a robust Quality rating of 6.8 and an intrinsic value of $205.5, suggesting significant upside potential for value-oriented analysis. The company reports a $38.7B market cap, $6,943.1M revenue, and strong $907.4M free cash flow, supported by 16.6% revenue growth and an impressive 30.4% ROIC. High 58.7% gross margin and 13.1% FCF margin reflect operational efficiency, while minimal 1.8% total debt to equity underscores financial health. Despite a modest -1.0% 1Y return, these metrics position GRMN as a stable pick in fitness and navigation tech within sports sectors.
Key Catalysts
- Exceptional 30.4% ROIC driving capital efficiency in wearables and marine segments
- 16.6% revenue growth fueled by demand for fitness trackers and aviation products
- Low 1.8% debt-to-equity enabling flexible growth investments
Risk Factors
- Recent -1.0% 1Y return amid market competition in consumer electronics
- Dependence on seasonal sales cycles in outdoor and fitness gear
Stock #2: Formula One Group (FWONK)
| Metric | Value |
|---|---|
| Market Cap | $24.6B |
| Quality Rating | 6.5 |
| Intrinsic Value | $56.7 |
| 1Y Return | 6.4% |
| Revenue | $4,040.0M |
| Free Cash Flow | $1,253.8M |
| Revenue Growth | 9.8% |
| FCF margin | 31.0% |
| Gross margin | 33.7% |
| ROIC | 3.0% |
| Total Debt to Equity | 23.7% |
Investment Thesis
Formula One Group (FWONK) earns a solid Quality rating of 6.5 with an intrinsic value of $56.7, highlighting undervaluation in motorsports entertainment. With a $24.6B market cap, it generates $4,040.0M revenue and exceptional $1,253.8M free cash flow, boasting a 31.0% FCF margin—among the highest here. 9.8% revenue growth and 33.7% gross margin support steady expansion, though 3.0% ROIC indicates room for capital improvement. 23.7% total debt to equity is manageable, paired with a positive 6.4% 1Y return, making FWONK a compelling sports media play.
Key Catalysts
- Outstanding 31.0% FCF margin from global race broadcasting rights
- 9.8% revenue growth via expanding international fanbase and sponsorships
- 6.4% 1Y return reflecting rising popularity of F1 events
Risk Factors
- Low 3.0% ROIC signaling inefficient capital deployment
- 23.7% debt-to-equity vulnerable to economic slowdowns in luxury entertainment
Stock #3: Amer Sports, Inc. (AS)
| Metric | Value |
|---|---|
| Market Cap | $20.9B |
| Quality Rating | 6.4 |
| Intrinsic Value | $8.2 |
| 1Y Return | 30.0% |
| Revenue | $6,100.6M |
| Free Cash Flow | $276.3M |
| Revenue Growth | 30.9% |
| FCF margin | 4.5% |
| Gross margin | 57.2% |
| ROIC | 6.1% |
| Total Debt to Equity | 33.0% |
Investment Thesis
Amer Sports, Inc. (AS) features a 6.4 Quality rating and $8.2 intrinsic value, offering analysis potential in athletic apparel. Its $20.9B market cap backs $6,100.6M revenue with 30.9% growth, though $276.3M free cash flow yields a modest 4.5% FCF margin. Strong 57.2% gross margin and 6.1% ROIC highlight profitability, with 30.0% 1Y return showing momentum. 33.0% total debt to equity warrants monitoring, positioning AS as a high-growth sports gear contender.
Key Catalysts
- Explosive 30.9% revenue growth from winter sports and apparel demand
- 57.2% gross margin supporting premium brand expansion
- Robust 30.0% 1Y return amid global fitness trends
Risk Factors
- Thin 4.5% FCF margin limiting cash for debt reduction
- 33.0% debt-to-equity exposed to consumer spending shifts
Stock #4: TKO Group Holdings, Inc. (TKO)
| Metric | Value |
|---|---|
| Market Cap | $17.0B |
| Quality Rating | 6.8 |
| Intrinsic Value | $177.5 |
| 1Y Return | 45.0% |
| Revenue | $4,339.4M |
| Free Cash Flow | $1,012.3M |
| Revenue Growth | 56.3% |
| FCF margin | 23.3% |
| Gross margin | 58.2% |
| ROIC | 6.8% |
| Total Debt to Equity | 45.6% |
Investment Thesis
TKO Group Holdings, Inc. (TKO) boasts a top 6.8 Quality rating and $177.5 intrinsic value, ideal for combat sports analysis. At $17.0B market cap, it delivers $4,339.4M revenue with explosive 56.3% growth and $1,012.3M free cash flow at 23.3% margin. 58.2% gross margin and 6.8% ROIC reflect strength, bolstered by 45.0% 1Y return. Elevated 45.6% debt-to-equity is offset by dynamic growth in WWE/UFC synergies.
Key Catalysts
- Massive 56.3% revenue growth from media rights and live events
- Strong 23.3% FCF margin funding content production
- Impressive 45.0% 1Y return via merger-driven scale
Risk Factors
- High 45.6% debt-to-equity from acquisition financing
- Event-dependent revenue prone to disruptions
Stock #5: CEMEX, S.A.B. de C.V. (CX)
| Metric | Value |
|---|---|
| Market Cap | $16.9B |
| Quality Rating | 5.8 |
| Intrinsic Value | $225.8 |
| 1Y Return | 104.1% |
| Revenue | $15.8B |
| Free Cash Flow | $1,002.1M |
| Revenue Growth | (6.5%) |
| FCF margin | 6.3% |
| Gross margin | 31.7% |
| ROIC | 7.9% |
| Total Debt to Equity | 16.5% |
Investment Thesis
CEMEX, S.A.B. de C.V. (CX) holds a 5.8 Quality rating with a standout $225.8 intrinsic value, relevant for sports infrastructure materials. $16.9B market cap supports $15.8B revenue and $1,002.1M free cash flow at 6.3% margin, despite 6.5% revenue growth. Solid 7.9% ROIC and 31.7% gross margin shine, with extraordinary 104.1% 1Y return. Low 16.5% debt-to-equity aids stability.
Key Catalysts
- Exceptional 104.1% 1Y return from construction rebound
- Healthy 7.9% ROIC in cement for stadium builds
- 6.3% FCF margin with low 16.5% debt
Risk Factors
- Negative 6.5% revenue growth signaling cyclical pressures
- Commodity price volatility in building materials
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Stock #6: Brunswick Corporation (BC)
| Metric | Value |
|---|---|
| Market Cap | $5,005.1M |
| Quality Rating | 5.3 |
| Intrinsic Value | $90.6 |
| 1Y Return | 19.9% |
| Revenue | $5,183.9M |
| Free Cash Flow | $631.0M |
| Revenue Growth | (4.8%) |
| FCF margin | 12.2% |
| Gross margin | 24.6% |
| ROIC | (3.5%) |
| Total Debt to Equity | 134.2% |
Investment Thesis
Brunswick Corporation (BC) scores a 5.3 Quality rating and $90.6 intrinsic value, focusing on marine leisure sports. $5,005.1M market cap pairs with $5,183.9M revenue and $631.0M free cash flow at 12.2% margin, despite 4.8% growth. 24.6% gross margin and 3.5% ROIC show challenges, but 19.9% 1Y return and high 134.2% debt-to-equity merit scrutiny for boating recovery.
Key Catalysts
- Solid 12.2% FCF margin in boat manufacturing
- 19.9% 1Y return from recreational demand
- Potential rebound in marine sector post-downturn
Risk Factors
- Negative 3.5% ROIC indicating capital inefficiencies
- Elevated 134.2% debt-to-equity amid slowing sales
Stock #7: Acushnet Holdings Corp. (GOLF)
| Metric | Value |
|---|---|
| Market Cap | $4,920.2M |
| Quality Rating | 6.6 |
| Intrinsic Value | $4,967.2 |
| 1Y Return | 14.6% |
| Revenue | $2,082.0B |
| Free Cash Flow | $143.3B |
| Revenue Growth | 85,757.8% |
| FCF margin | 6.9% |
| Gross margin | 48.5% |
| ROIC | 0.0% |
| Total Debt to Equity | 105.2% |
Investment Thesis
Acushnet Holdings Corp. (GOLF) achieves a strong 6.6 Quality rating and extraordinary $4,967.2 intrinsic value, dominant in golf equipment. $4,920.2M market cap drives $2,082.0B revenue with phenomenal 85,757.8% growth and $143.3B free cash flow at 6.9% margin. 48.5% gross margin supports this, though 0.0% ROIC and 105.2% debt-to-equity add nuance, with 14.6% 1Y return.
Key Catalysts
- Astonishing 85,757.8% revenue growth in Titleist/footjoy brands
- Massive scale with $143.3B FCF
- Steady 14.6% 1Y return in premium golf market
Risk Factors
- Neutral 0.0% ROIC despite growth
- High 105.2% debt-to-equity straining balance sheet
Stock #8: YETI Holdings, Inc. (YETI)
| Metric | Value |
|---|---|
| Market Cap | $3,617.8M |
| Quality Rating | 6.5 |
| Intrinsic Value | $43.4 |
| 1Y Return | 19.5% |
| Revenue | $1,831.3M |
| Free Cash Flow | $231.2M |
| Revenue Growth | 1.6% |
| FCF margin | 12.6% |
| Gross margin | 57.8% |
| ROIC | 22.7% |
| Total Debt to Equity | 21.8% |
Investment Thesis
YETI Holdings, Inc. (YETI) posts a 6.5 Quality rating and $43.4 intrinsic value, strong in outdoor sports coolers. $3,617.8M market cap yields $1,831.3M revenue, $231.2M free cash flow at 12.6% margin, and 1.6% growth. Excellent 22.7% ROIC, 57.8% gross margin, and low 21.8% debt-to-equity shine, with 19.5% 1Y return.
Key Catalysts
- High 22.7% ROIC in durable goods
- 57.8% gross margin for premium pricing power
- Consistent 19.5% 1Y return
Risk Factors
- Modest 1.6% revenue growth in competitive outdoors
- Brand saturation risks
Stock #9: Manchester United plc (MANU)
| Metric | Value |
|---|---|
| Market Cap | $2,745.1M |
| Quality Rating | 5.4 |
| Intrinsic Value | $12.0 |
| 1Y Return | -7.1% |
| Revenue | £663.8M |
| Free Cash Flow | (£192.0M) |
| Revenue Growth | 2.5% |
| FCF margin | (28.9%) |
| Gross margin | 91.6% |
| ROIC | (4.1%) |
| Total Debt to Equity | (218.1%) |
Investment Thesis
Manchester United plc (MANU) has a 5.4 Quality rating and $12.0 intrinsic value, analyzing soccer club dynamics. $2,745.1M market cap with £663.8M revenue, negative £192.0M free cash flow at 28.9% margin, and 2.5% growth. High 91.6% gross margin contrasts 4.1% ROIC and 218.1% debt-to-equity, with -7.1% 1Y return.
Key Catalysts
- Elevated 91.6% gross margin from broadcasting
- 2.5% revenue growth via global fan engagement
- Brand strength in premier league
Risk Factors
- Negative 28.9% FCF margin and cash burn
- Extreme 218.1% debt-to-equity
Stock #10: Denali Therapeutics Inc. (DNLI)
| Metric | Value |
|---|---|
| Market Cap | $2,740.6M |
| Quality Rating | 5.6 |
| Intrinsic Value | $6.1 |
| 1Y Return | -21.9% |
| Revenue | $0.0 |
| Free Cash Flow | ($410.8M) |
| Revenue Growth | (100.0%) |
| FCF margin | N/A |
| Gross margin | N/A |
| ROIC | (464.9%) |
| Total Debt to Equity | 4.8% |
Investment Thesis
Denali Therapeutics Inc. (DNLI) rates 5.6 Quality with $6.1 intrinsic value, exploring biotech for sports neurology. $2,740.6M market cap, $0.0 revenue, and $410.8M free cash flow reflect pre-revenue stage, with 100.0% growth and 464.9% ROIC. Low 4.8% debt-to-equity balances -21.9% 1Y return.
Key Catalysts
- Pipeline potential in neurodegenerative therapies
- Minimal 4.8% debt-to-equity for R&D funding
- Biotech upside in performance health
Risk Factors
- Zero revenue and $410.8M FCF burn
- Severe 464.9% ROIC and -21.9% 1Y return
Portfolio Diversification Insights
These 10 stock picks cluster in sports/leisure: tech/fitness (GRMN), motorsports (FWONK), apparel (AS, YETI), entertainment (TKO, MANU), marine/golf (BC, GOLF), materials (CX), and biotech (DNLI). Allocation favors consumer-facing 50% over cyclicals 30% and speculative 20%, reducing correlation—e.g., GRMN's stability offsets DNLI's volatility. High-ROIC leaders like GRMN/YETI complement growth plays like TKO/AS for balanced stock watchlist exposure.
Market Timing & Entry Strategies
Consider entry on dips below intrinsic value thresholds, such as GRMN under $205.5 or TKO near support levels. Monitor quarterly earnings for revenue catalysts like AS's 30.9% growth. Use ValueSense charting for ROIC trends; dollar-cost average into diversified baskets during sector rotations toward leisure post-earnings seasons.
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FAQ Section
How were these stocks selected?
These picks derive from ValueSense screener criteria emphasizing Quality rating >5.3, high intrinsic value upside, ROIC, and sports/leisure themes for undervalued stocks.
What's the best stock from this list?
GRMN leads with top 6.8 Quality rating, 30.4% ROIC, and low debt, though TKO's 56.3% growth appeals for momentum analysis.
Should I buy all these stocks or diversify?
Diversify across sectors like fitness (GRMN), entertainment (TKO), and gear (GOLF) to mitigate risks, using portfolio tools for allocation.
What are the biggest risks with these picks?
Key concerns include high debt (BC, GOLF), negative FCF (MANU, DNLI), and cyclical growth (CX, AS) amid economic shifts.
When is the best time to invest in these stocks?
Target post-earnings dips or when prices trail intrinsic value, tracking catalysts like revenue growth via ValueSense dashboards.