10 Best Sportstech for January 2026
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Market Overview & Selection Criteria
The sportstech sector continues to show resilience amid broader market volatility, driven by digital transformation in sports betting, fitness tech, streaming, and gaming. ValueSense analysis highlights companies with strong intrinsic value potential, focusing on metrics like Quality rating, intrinsic value comparisons, revenue growth, ROIC, and FCF margins. These 10 best sportstech stock picks were selected using ValueSense stock screener criteria: Quality rating above 4.5 where possible, favorable intrinsic value upside, and exposure to sports-related tech innovations. This watchlist emphasizes undervalued opportunities in gaming, fitness, biotech, and live streaming, ideal for investors building diversified stock watchlists in 2026.
Featured Stock Analysis
Stock #1: Sportradar Group AG (SRAD)
| Metric | Value |
|---|---|
| Market Cap | $6,977.1M |
| Quality Rating | 7.1 |
| Intrinsic Value | $33.8 |
| 1Y Return | 33.7% |
| Revenue | €1,228.1M |
| Free Cash Flow | €282.0M |
| Revenue Growth | 16.7% |
| FCF margin | 23.0% |
| Gross margin | 41.8% |
| ROIC | 19.0% |
| Total Debt to Equity | 6.4% |
Investment Thesis
Sportradar Group AG (SRAD) stands out with a robust Quality rating of 7.1 and an intrinsic value of $33.8, suggesting significant undervaluation for value-oriented analysis. The company reports €1,228.1M in revenue with 16.7% growth, supported by €282.0M free cash flow and a healthy 23.0% FCF margin. Gross margins at 41.8% and ROIC of 19.0% reflect efficient operations, while low Total Debt to Equity of 6.4% indicates financial stability. With a $6,977.1M market cap and 33.7% 1Y return, SRAD analysis reveals a leader in sports data and betting tech poised for sustained growth in a expanding digital sports market.
Key Catalysts
- Strong revenue growth of 16.7% signaling market expansion in sports analytics
- High FCF margin 23.0% enabling reinvestment and shareholder returns
- Superior ROIC 19.0% demonstrating capital efficiency
- Low debt levels 6.4% supporting flexibility in volatile markets
Risk Factors
- Currency fluctuations from euro-denominated revenue
- Competition in sports data services
- Dependence on global sports betting regulations
Stock #2: 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), a biotech player in sportstech-related health innovations, carries a Quality rating of 5.6 with intrinsic value at $6.1. Despite $0.0 revenue and 100.0% growth reflecting pre-commercial stage, the $2,740.6M market cap and low 4.8% Total Debt to Equity provide a stable foundation. Negative metrics like $410.8M free cash flow, N/A margins, and 464.9% ROIC highlight R&D intensity, but 1Y return of -21.9% offers entry for long-term biotech watchers analyzing pipeline potential in neurodegenerative therapies tied to athletic performance.
Key Catalysts
- Low debt 4.8% preserving cash for R&D breakthroughs
- Biotech pipeline potential in health tech for sports
- Strategic positioning in emerging sportstech health segments
Risk Factors
- Zero revenue and negative FCF signaling cash burn
- Extreme negative ROIC -464.9% from development costs
- Clinical trial uncertainties in biotech
Stock #3: Peloton Interactive, Inc. (PTON)
| Metric | Value |
|---|---|
| Market Cap | $2,488.7M |
| Quality Rating | 5.6 |
| Intrinsic Value | $12.1 |
| 1Y Return | -30.7% |
| Revenue | $2,455.6M |
| Free Cash Flow | $380.4M |
| Revenue Growth | (8.7%) |
| FCF margin | 15.5% |
| Gross margin | 50.8% |
| ROIC | (2.1%) |
| Total Debt to Equity | (292.9%) |
Investment Thesis
Peloton Interactive, Inc. (PTON) features a Quality rating of 5.6 and intrinsic value of $12.1 amid fitness tech recovery. With $2,455.6M revenue, $380.4M free cash flow (15.5% margin), and 50.8% gross margin, the company shows operational strength despite 8.7% revenue growth and 2.1% ROIC. Market cap of $2,488.7M and -30.7% 1Y return present undervalued stock potential, with negative 292.9% Total Debt to Equity warranting scrutiny in this connected fitness leader.
Key Catalysts
- Positive FCF $380.4M and solid gross margins 50.8%
- Subscription model driving recurring revenue in fitness tech
- Brand strength in home workout sportstech
Risk Factors
- Declining revenue growth -8.7% post-pandemic
- Negative ROIC -2.1% indicating capital inefficiencies
- High negative debt to equity -292.9% balance sheet concerns
Stock #4: Topgolf Callaway Brands Corp. (MODG)
| Metric | Value |
|---|---|
| Market Cap | $2,151.6M |
| Quality Rating | 5.7 |
| Intrinsic Value | $36.9 |
| 1Y Return | 30.2% |
| Revenue | $4,061.2M |
| Free Cash Flow | ($257.4M) |
| Revenue Growth | (3.6%) |
| FCF margin | (6.3%) |
| Gross margin | 65.7% |
| ROIC | (22.9%) |
| Total Debt to Equity | 78.5% |
Investment Thesis
Topgolf Callaway Brands Corp. (MODG) earns a Quality rating of 5.7 with intrinsic value at $36.9, highlighting upside in golf tech and entertainment. Revenue of $4,061.2M contrasts 3.6% growth and negative $257.4M FCF (-6.3% margin), but 65.7% gross margin shines. $2,151.6M market cap, 30.2% 1Y return, 22.9% ROIC, and 78.5% Total Debt to Equity frame a turnaround story in experiential sportstech.
Key Catalysts
- Exceptional gross margins 65.7% from premium branding
- Positive 1Y return 30.2% momentum
- Topgolf integration boosting venue-based revenue
Risk Factors
- Negative FCF and margins signaling cash pressures
- Declining revenue -3.6% in mature golf market
- Elevated debt 78.5% amid ROIC challenges
Stock #5: DouYu International Holdings Limited (DOYU)
| Metric | Value |
|---|---|
| Market Cap | $2,114.0M |
| Quality Rating | 4.7 |
| Intrinsic Value | $7.5 |
| 1Y Return | 60.2% |
| Revenue | CN¥4,036.1M |
| Free Cash Flow | CN¥0.0 |
| Revenue Growth | (8.9%) |
| FCF margin | 0.0% |
| Gross margin | 10.9% |
| ROIC | 59.7% |
| Total Debt to Equity | 0.5% |
Investment Thesis
DouYu International Holdings Limited (DOYU), a live streaming platform, holds a Quality rating of 4.7 and intrinsic value of $7.5. CN¥4,036.1M revenue with 8.9% growth, CN¥0.0 free cash flow (0.0% margin), and 10.9% gross margin pair with strong 59.7% ROIC. $2,114.0M market cap and 60.2% 1Y return, plus minimal 0.5% Total Debt to Equity, position it for China sportstech recovery analysis.
Key Catalysts
- High ROIC 59.7% from efficient operations
- Impressive 1Y return 60.2% in gaming streams
- Near-zero debt 0.5% for agility
Risk Factors
- Revenue contraction -8.9% in competitive streaming
- Zero FCF limiting growth funding
- Geopolitical risks in China markets
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Stock #6: Herbalife Nutrition Ltd. (HLF)
| Metric | Value |
|---|---|
| Market Cap | $1,333.1M |
| Quality Rating | 5.6 |
| Intrinsic Value | $84.5 |
| 1Y Return | 91.9% |
| Revenue | $4,961.9M |
| Free Cash Flow | $217.0M |
| Revenue Growth | (0.8%) |
| FCF margin | 4.4% |
| Gross margin | 78.0% |
| ROIC | 33.7% |
| Total Debt to Equity | (29.3%) |
Investment Thesis
Herbalife Nutrition Ltd. (HLF) scores a Quality rating of 5.6 with standout intrinsic value of $84.5. $4,961.9M revenue, 0.8% growth, $217.0M FCF (4.4% margin), 78.0% gross margin, and 33.7% ROIC drive appeal. $1,333.1M market cap and 91.9% 1Y return, despite 29.3% Total Debt to Equity, offer value stock insights in nutrition tied to sports performance.
Key Catalysts
- Highest 1Y return 91.9% momentum
- Strong ROIC 33.7% and gross margins 78.0%
- Positive FCF generation $217.0M
Risk Factors
- Slight revenue dip -0.8%
- Negative debt to equity -29.3% leverage
- Direct sales model regulatory scrutiny
Stock #7: fuboTV Inc. (FUBO)
| Metric | Value |
|---|---|
| Market Cap | $892.2M |
| Quality Rating | 6.3 |
| Intrinsic Value | $4.9 |
| 1Y Return | 83.7% |
| Revenue | $1,616.7M |
| Free Cash Flow | $134.8M |
| Revenue Growth | 1.7% |
| FCF margin | 8.3% |
| Gross margin | 17.2% |
| ROIC | (11.1%) |
| Total Debt to Equity | 103.4% |
Investment Thesis
fuboTV Inc. (FUBO) boasts a Quality rating of 6.3 and intrinsic value of $4.9 in sports streaming. $1,616.7M revenue with 1.7% growth, $134.8M FCF (8.3% margin), but 17.2% gross margin and 11.1% ROIC. $892.2M market cap, 83.7% 1Y return, and 103.4% Total Debt to Equity highlight high-reward sportstech streaming analysis.
Key Catalysts
- Robust 1Y return 83.7% from subscriber growth
- Positive FCF $134.8M turnaround
- Live sports streaming demand
Risk Factors
- Negative ROIC -11.1% inefficiencies
- High debt 103.4% vulnerability
- Competitive video streaming wars
Stock #8: HUYA Inc. (HUYA)
| Metric | Value |
|---|---|
| Market Cap | $700.8M |
| Quality Rating | 4.5 |
| Intrinsic Value | $5.6 |
| 1Y Return | 2.7% |
| Revenue | CN¥6,259.8M |
| Free Cash Flow | CN¥0.0 |
| Revenue Growth | 1.6% |
| FCF margin | 0.0% |
| Gross margin | 12.7% |
| ROIC | (11.3%) |
| Total Debt to Equity | 0.5% |
Investment Thesis
HUYA Inc. (HUYA) has a Quality rating of 4.5 and intrinsic value of $5.6 in esports streaming. CN¥6,259.8M revenue, 1.6% growth, CN¥0.0 FCF (0.0% margin), 12.7% gross margin, and 11.3% ROIC. $700.8M market cap, 2.7% 1Y return, and 0.5% Total Debt to Equity suit conservative gaming stock evaluations.
Key Catalysts
- Minimal debt 0.5% balance sheet strength
- Steady revenue growth 1.6% in esports
- Large revenue base (CN¥6,259.8M)
Risk Factors
- Zero FCF constraining expansion
- Negative ROIC -11.3%
- China regulatory environment
Stock #9: Health In Tech, Inc. (HIT)
| Metric | Value |
|---|---|
| Market Cap | $93.1M |
| Quality Rating | 6.3 |
| Intrinsic Value | $422.1K |
| 1Y Return | -66.5% |
| Revenue | $8,490.1B |
| Free Cash Flow | $2,682.6B |
| Revenue Growth | 42,873,585.9% |
| FCF margin | 31.6% |
| Gross margin | 60.6% |
| ROIC | 14.1% |
| Total Debt to Equity | 0.9% |
Investment Thesis
Health In Tech, Inc. (HIT) achieves a Quality rating of 6.3 with intrinsic value at $422.1K, backed by massive $8,490.1B revenue and 42,873,585.9% growth. $2,682.6B FCF (31.6% margin), 60.6% gross margin, 14.1% ROIC, and 0.9% Total Debt to Equity define exceptional metrics. $93.1M market cap and -66.5% 1Y return signal microcap sportstech volatility for in-depth analysis.
Key Catalysts
- Explosive revenue growth 42,873,585.9%
- Strong FCF margin 31.6% and ROIC 14.1%
- Low debt 0.9% stability
Risk Factors
- Sharp 1Y decline -66.5%
- Microcap liquidity risks
- Extraordinary growth sustainability
Stock #10: Skillz Inc. (SKLZ)
| Metric | Value |
|---|---|
| Market Cap | $67.0M |
| Quality Rating | 5.4 |
| Intrinsic Value | $32.3 |
| 1Y Return | -17.3% |
| Revenue | $97.5M |
| Free Cash Flow | ($80.3M) |
| Revenue Growth | (6.4%) |
| FCF margin | (82.3%) |
| Gross margin | 86.9% |
| ROIC | (267.9%) |
| Total Debt to Equity | 0.1% |
Investment Thesis
Skillz Inc. (SKLZ), a mobile gaming platform, rates 5.4 Quality with intrinsic value of $32.3. $97.5M revenue, 6.4% growth, $80.3M FCF (-82.3% margin), but 86.9% gross margin. $67.0M market cap, -17.3% 1Y return, 267.9% ROIC, and 0.1% Total Debt to Equity frame a speculative esports stock profile.
Key Catalysts
- High gross margins 86.9% in gaming
- Near-zero debt 0.1%
- Platform potential in competitive gaming
Risk Factors
- Negative FCF and extreme ROIC -267.9%
- Revenue decline -6.4%
- Small cap execution risks
Portfolio Diversification Insights
This sportstech stock watchlist balances high-flyers like HLF (91.9% 1Y return) and FUBO 83.7% with stable names like SRAD (Quality 7.1). Sector allocation: ~40% streaming/gaming (DOYU, FUBO, HUYA, SKLZ), 30% fitness/sports gear (PTON, MODG), 20% data/tech (SRAD), 10% biotech/nutrition (DNLI, HLF, HIT). Cross-references show SRAD's data strength complements streaming plays, while low-debt profiles (e.g., DOYU 0.5%) offset leveraged ones (FUBO 103.4%). Diversifying across these reduces concentration risk in volatile sportstech.
Market Timing & Entry Strategies
Consider positions during sector dips, such as post-earnings volatility or sports off-seasons, targeting intrinsic value gaps (e.g., HLF at $84.5). Use ValueSense charting for ROIC trends and screeners for entry below key supports. Dollar-cost average into high-quality picks like SRAD, monitoring FCF for cash-rich entries. Analyze 1Y returns for momentum shifts, entering on pullbacks in growth names like HIT despite volatility.
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FAQ Section
How were these stocks selected?
These sportstech stock picks were filtered via ValueSense criteria emphasizing Quality rating, intrinsic value upside, ROIC, and FCF metrics for undervalued opportunities in sports tech, gaming, and fitness.
What's the best stock from this list?
SRAD leads with the highest Quality rating 7.1, positive growth 16.7%, and strong ROIC 19.0%, making it a top sportstech analysis standout based on ValueSense data.
Should I buy all these stocks or diversify?
Diversification across streaming, fitness, and data subsectors mitigates risks; allocate based on risk tolerance, favoring high FCF names like PTON alongside growth plays like HIT.
What are the biggest risks with these picks?
Key concerns include negative FCF/ROIC in early-stage firms (DNLI, SKLZ), revenue declines (PTON, DOYU), high debt (FUBO, MODG), and microcap volatility (HIT, SKLZ).
When is the best time to invest in these stocks?
Target entries on intrinsic value discounts, positive catalyst news, or sector rotations; use ValueSense tools to track FCF improvements and ROIC rebounds for optimal timing.