10 Best Undervalued Growth Stocks Insiders Are Buying for October 2025
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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
The current market environment is characterized by heightened volatility and sector rotation, with investors seeking resilient companies that demonstrate strong fundamentals and intrinsic value. Our selection methodology prioritizes stocks with robust financial metrics, attractive intrinsic value relative to price, and sectoral diversification. Each pick is evaluated using ValueSense’s proprietary quality rating, intrinsic value estimates, and key financial ratios to identify undervalued opportunities across technology, healthcare, energy, and industrials.
Featured Stock Analysis
ConocoPhillips (COP)
| Metric | Value |
|---|---|
| Market Cap | $109.3B |
| Quality Rating | 5.9 |
| Intrinsic Value | $114.8 |
| 1Y Return | -16.1% |
| Revenue | $58.3B |
| Free Cash Flow | $6,923.0M |
| Revenue Growth | 3.5% |
| FCF margin | 11.9% |
| Gross margin | 28.7% |
| ROIC | 9.3% |
| Total Debt to Equity | 35.9% |
Investment Thesis
ConocoPhillips stands out in the energy sector with a market cap of $109.3B and a ValueSense quality rating of 5.9. Despite a recent 1-year return of -16.1%, the company’s intrinsic value is estimated at $114.8, suggesting potential upside from current levels. The company’s revenue of $58.3B and free cash flow of $6,923M highlight its operational scale and cash generation capacity. With a revenue growth of 3.5% and a healthy FCF margin of 11.9%, ConocoPhillips demonstrates resilience in a challenging commodity environment.
Key Catalysts
- Stable free cash flow supporting shareholder returns
- Intrinsic value significantly above current market price
- Moderate debt levels (Total Debt to Equity: 35.9%)
- Consistent gross margin 28.7% and ROIC 9.3%
Risk Factors
- Exposure to commodity price fluctuations
- Slower revenue growth compared to peers
- Energy sector volatility impacting returns
Warner Bros. Discovery, Inc. (WBD)
| Metric | Value |
|---|---|
| Market Cap | $45.3B |
| Quality Rating | 6.0 |
| Intrinsic Value | $28.5 |
| 1Y Return | 128.6% |
| Revenue | $38.4B |
| Free Cash Flow | $4,065.0M |
| Revenue Growth | (3.7%) |
| FCF margin | 10.6% |
| Gross margin | 52.7% |
| ROIC | (12.3%) |
| Total Debt to Equity | 92.7% |
Investment Thesis
Warner Bros. Discovery has rebounded strongly, posting a 1-year return of 128.6%. With a market cap of $45.3B and a ValueSense quality rating of 6.0, the company’s intrinsic value of $28.5 signals continued upside potential. Revenue stands at $38.4B, and free cash flow at $4,065M, supporting ongoing investment in content and digital platforms. Despite a revenue decline of 3.7%, the company maintains a robust gross margin of 52.7%.
Key Catalysts
- Strong free cash flow and gross margin
- Digital transformation and streaming growth
- Intrinsic value above current price
- Brand strength in media and entertainment
Risk Factors
- High debt levels (Total Debt to Equity: 92.7%)
- Negative revenue growth
- Competitive pressures in streaming and media
Charter Communications, Inc. (CHTR)
| Metric | Value |
|---|---|
| Market Cap | $35.3B |
| Quality Rating | 6.5 |
| Intrinsic Value | $526.4 |
| 1Y Return | -22.7% |
| Revenue | $55.2B |
| Free Cash Flow | $4,303.0M |
| Revenue Growth | 1.0% |
| FCF margin | 7.8% |
| Gross margin | 58.9% |
| ROIC | 8.6% |
| Total Debt to Equity | 472.7% |
Investment Thesis
Charter Communications, a major player in telecommunications, has a market cap of $35.3B and a ValueSense quality rating of 6.5. The company’s intrinsic value is $526.4, far exceeding its current price, indicating deep value potential. Despite a 1-year return of -22.7%, Charter’s $55.2B revenue and $4,303M free cash flow reflect its scale and operational efficiency. Revenue growth is modest at 1.0%, but gross margin is strong at 58.9%.
Key Catalysts
- Significant undervaluation based on intrinsic value
- Strong gross margin and operational scale
- Stable free cash flow generation
- Sector consolidation opportunities
Risk Factors
- Very high leverage (Total Debt to Equity: 472.7%)
- Slow revenue growth
- Competitive pressures in broadband and cable
CenterPoint Energy, Inc. (CNP)
| Metric | Value |
|---|---|
| Market Cap | $25.9B |
| Quality Rating | 6.2 |
| Intrinsic Value | $44.6 |
| 1Y Return | 33.5% |
| Revenue | $8,982.0M |
| Free Cash Flow | ($3,028.0M) |
| Revenue Growth | 4.8% |
| FCF margin | (33.7%) |
| Gross margin | 44.0% |
| ROIC | 4.6% |
| Total Debt to Equity | 196.2% |
Investment Thesis
CenterPoint Energy, with a market cap of $25.9B and a ValueSense quality rating of 6.2, offers defensive exposure in the utilities sector. The company’s intrinsic value of $44.6 and a 1-year return of 33.5% highlight its appeal in volatile markets. Revenue is $8,982M, but free cash flow is negative at -$3,028M, reflecting sector-specific capital intensity. Revenue growth is healthy at 4.8%, and gross margin is 44.0%.
Key Catalysts
- Strong recent price performance
- Defensive sector positioning
- Attractive intrinsic value
- Stable revenue growth
Risk Factors
- Negative free cash flow
- High leverage (Total Debt to Equity: 196.2%)
- Regulatory risks in utilities
Gartner, Inc. (IT)
| Metric | Value |
|---|---|
| Market Cap | $18.2B |
| Quality Rating | 7.5 |
| Intrinsic Value | $383.3 |
| 1Y Return | -55.5% |
| Revenue | $6,420.0M |
| Free Cash Flow | $1,511.7M |
| Revenue Growth | 5.9% |
| FCF margin | 23.5% |
| Gross margin | 68.0% |
| ROIC | 23.2% |
| Total Debt to Equity | 186.8% |
Investment Thesis
Gartner, a leader in research and advisory, has a market cap of $18.2B and a ValueSense quality rating of 7.5. Despite a steep 1-year return of -55.5%, the company’s intrinsic value of $383.3 suggests significant upside. Revenue is $6,420M, with free cash flow of $1,511.7M and a high FCF margin of 23.5%. Gross margin is industry-leading at 68.0%, and ROIC is strong at 23.2%.
Key Catalysts
- High intrinsic value relative to current price
- Leading gross margin and FCF margin
- Strong ROIC and operational efficiency
- Sector leadership in research and advisory
Risk Factors
- Recent share price underperformance
- High leverage (Total Debt to Equity: 186.8%)
- Cyclical demand for advisory services
The Cooper Companies, Inc. (COO)
| Metric | Value |
|---|---|
| Market Cap | $14.4B |
| Quality Rating | 6.1 |
| Intrinsic Value | $93.2 |
| 1Y Return | -34.1% |
| Revenue | $4,045.7M |
| Free Cash Flow | $411.9M |
| Revenue Growth | 6.4% |
| FCF margin | 10.2% |
| Gross margin | 67.0% |
| ROIC | 6.0% |
| Total Debt to Equity | 29.7% |
Investment Thesis
The Cooper Companies operates in healthcare with a market cap of $14.4B and a ValueSense quality rating of 6.1. The company’s intrinsic value of $93.2 and a 1-year return of -34.1% highlight potential for recovery. Revenue is $4,045.7M, and free cash flow is $411.9M. Revenue growth is solid at 6.4%, and gross margin is high at 67.0%.
Key Catalysts
- Attractive intrinsic value
- High gross margin and stable revenue growth
- Defensive healthcare sector exposure
- Low leverage (Total Debt to Equity: 29.7%)
Risk Factors
- Recent share price decline
- Moderate free cash flow margin
- Sector-specific regulatory risks
Booz Allen Hamilton Holding Corporation (BAH)
| Metric | Value |
|---|---|
| Market Cap | $12.1B |
| Quality Rating | 7.5 |
| Intrinsic Value | $177.6 |
| 1Y Return | -40.3% |
| Revenue | $12.0B |
| Free Cash Flow | $987.3M |
| Revenue Growth | 9.3% |
| FCF margin | 8.3% |
| Gross margin | 54.3% |
| ROIC | 24.2% |
| Total Debt to Equity | 393.0% |
Investment Thesis
Booz Allen Hamilton, a consulting and analytics leader, has a market cap of $12.1B and a ValueSense quality rating of 7.5. Despite a 1-year return of -40.3%, the intrinsic value of $177.6 suggests deep value. Revenue is $12.0B, and free cash flow is $987.3M. Revenue growth is robust at 9.3%, with a gross margin of 54.3% and ROIC of 24.2%.
Key Catalysts
- High intrinsic value and quality rating
- Strong revenue growth and gross margin
- Sector leadership in consulting
- High ROIC
Risk Factors
- Elevated leverage (Total Debt to Equity: 393.0%)
- Recent share price underperformance
- Exposure to government contract cycles
Molina Healthcare, Inc. (MOH)
| Metric | Value |
|---|---|
| Market Cap | $10.2B |
| Quality Rating | 6.2 |
| Intrinsic Value | $463.1 |
| 1Y Return | -43.0% |
| Revenue | $43.4B |
| Free Cash Flow | $427.0M |
| Revenue Growth | 16.1% |
| FCF margin | 1.0% |
| Gross margin | 10.9% |
| ROIC | 25.5% |
| Total Debt to Equity | 77.4% |
Investment Thesis
Molina Healthcare, with a market cap of $10.2B and a ValueSense quality rating of 6.2, offers exposure to managed healthcare. The company’s intrinsic value of $463.1 and a 1-year return of -43.0% highlight potential for value recovery. Revenue is $43.4B, with free cash flow of $427M. Revenue growth is strong at 16.1%, and ROIC is industry-leading at 25.5%.
Key Catalysts
- High intrinsic value and ROIC
- Strong revenue growth
- Defensive healthcare sector positioning
- Moderate leverage (Total Debt to Equity: 77.4%)
Risk Factors
- Low free cash flow margin
- Recent share price decline
- Regulatory and reimbursement risks
Parsons Corporation (PSN)
| Metric | Value |
|---|---|
| Market Cap | $8,898.9M |
| Quality Rating | 6.1 |
| Intrinsic Value | $111.1 |
| 1Y Return | -23.1% |
| Revenue | $6,683.1M |
| Free Cash Flow | $520.4M |
| Revenue Growth | 9.2% |
| FCF margin | 7.8% |
| Gross margin | 21.4% |
| ROIC | 6.7% |
| Total Debt to Equity | 56.2% |
Investment Thesis
Parsons Corporation, operating in engineering and infrastructure, has a market cap of $8.9B and a ValueSense quality rating of 6.1. The company’s intrinsic value of $111.1 and a 1-year return of -23.1% suggest value potential. Revenue is $6,683.1M, and free cash flow is $520.4M. Revenue growth is 9.2%, with a gross margin of 21.4%.
Key Catalysts
- Attractive intrinsic value
- Solid revenue growth
- Infrastructure sector exposure
- Moderate leverage (Total Debt to Equity: 56.2%)
Risk Factors
- Lower gross margin compared to peers
- Recent share price underperformance
- Project-based revenue volatility
APA Corporation (APA)
| Metric | Value |
|---|---|
| Market Cap | $8,326.0M |
| Quality Rating | 6.6 |
| Intrinsic Value | $46.2 |
| 1Y Return | -5.3% |
| Revenue | $10.1B |
| Free Cash Flow | $1,634.0M |
| Revenue Growth | 12.1% |
| FCF margin | 16.2% |
| Gross margin | 55.1% |
| ROIC | 22.9% |
| Total Debt to Equity | 67.6% |
Investment Thesis
APA Corporation, an energy exploration and production company, has a market cap of $8.3B and a ValueSense quality rating of 6.6. The company’s intrinsic value of $46.2 and a 1-year return of -5.3% highlight its resilience. Revenue is $10.1B, and free cash flow is $1,634M. Revenue growth is robust at 12.1%, with a FCF margin of 16.2% and gross margin of 55.1%.
Key Catalysts
- Strong free cash flow and gross margin
- Attractive intrinsic value
- Resilient revenue growth
- Moderate leverage (Total Debt to Equity: 67.6%)
Risk Factors
- Commodity price exposure
- Recent share price underperformance
- Sector volatility
Portfolio Diversification Insights
This watchlist spans energy, healthcare, technology, utilities, media, consulting, and infrastructure, providing broad sector diversification. Energy stocks (COP, APA) offer commodity exposure, while healthcare picks (COO, MOH) provide defensive growth. Technology and consulting (IT, BAH) add innovation and advisory upside, and infrastructure (PSN) balances cyclical risk. Utilities (CNP) and media (WBD) further diversify the portfolio, reducing sector-specific volatility and enhancing risk-adjusted returns.
Market Timing & Entry Strategies
Given recent market volatility, staggered entry strategies such as dollar-cost averaging or sector rotation can help mitigate timing risk. Investors may consider entering positions on pullbacks, focusing on stocks with intrinsic value well above current prices. Monitoring earnings releases, macroeconomic trends, and sector news can further refine entry points for each stock.
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 proprietary screening methodology, focusing on intrinsic value, quality rating, financial metrics, and sector diversification based on the latest platform data.
Q2: What's the best stock from this list?
Each stock offers unique value; those with the highest intrinsic value relative to current price and strong quality ratings, such as Gartner (IT) and Booz Allen Hamilton (BAH), stand out for further analysis.
Q3: Should I buy all these stocks or diversify?
Diversification across sectors—energy, healthcare, technology, and more—can help manage risk and enhance portfolio resilience, as highlighted by the varied picks in this watchlist.
Q4: What are the biggest risks with these picks?
Key risks include sector-specific volatility, high leverage for some companies, negative recent returns, and exposure to macroeconomic and regulatory changes.
Q5: When is the best time to invest in these stocks?
Entry timing can be optimized by monitoring market pullbacks, earnings releases, and sector trends, with staggered investment strategies recommended for risk management.