10 Best Undervalued Growth Stocks Insiders Are Buying for January 2026
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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
In the current market environment, investors seek undervalued stocks with strong fundamentals amid volatility in energy, technology, and infrastructure sectors. ValueSense selected these 10 best stock picks using its proprietary screener, focusing on Quality rating, intrinsic value comparisons, revenue growth, free cash flow generation, and ROIC. Criteria emphasize companies trading below their intrinsic value, with positive growth metrics and balanced debt levels, ideal for a diversified stock watchlist. This methodology highlights undervalued growth stocks across transportation, energy, industrials, and materials, providing educational analysis for retail investors.
Featured Stock Analysis
Stock #1: Uber Technologies, Inc. (UBER)
| Metric | Value |
|---|---|
| Market Cap | $173.2B |
| Quality Rating | 7.2 |
| Intrinsic Value | $161.4 |
| 1Y Return | 31.2% |
| Revenue | $49.6B |
| Free Cash Flow | $8,661.0M |
| Revenue Growth | 18.2% |
| FCF margin | 17.5% |
| Gross margin | 39.7% |
| ROIC | 91.6% |
| Total Debt to Equity | 41.8% |
Investment Thesis
Uber Technologies, Inc. (UBER) stands out with a Quality rating of 7.2 and a market cap of $173.2B. Its intrinsic value of $161.4 suggests potential undervaluation, supported by robust $49.6B revenue and $8,661.0M free cash flow. The company demonstrates strong revenue growth of 18.2%, a healthy FCF margin of 17.5%, gross margin of 39.7%, and exceptional ROIC of 91.6%, with Total Debt to Equity at 41.8%. A 1Y return of 31.2% underscores its growth trajectory in ride-sharing and delivery, making it a key pick for technology-driven stock ideas. This analysis reveals efficient capital allocation and scalability in a competitive market.
Key Catalysts
- High ROIC 91.6% indicating superior capital efficiency
- Strong revenue growth 18.2% from expanding mobility services
- Solid FCF margin 17.5% supporting reinvestment and shareholder returns
- Improving gross margin 39.7% amid operational leverage
Risk Factors
- Moderate Total Debt to Equity 41.8% vulnerable to interest rate shifts
- Competitive pressures in ride-sharing could impact margins
- Regulatory risks in global operations
Stock #2: ConocoPhillips (COP)
| Metric | Value |
|---|---|
| Market Cap | $119.3B |
| Quality Rating | 6.4 |
| Intrinsic Value | $131.0 |
| 1Y Return | -2.6% |
| Revenue | $60.2B |
| Free Cash Flow | $16.6B |
| Revenue Growth | 8.1% |
| FCF margin | 27.6% |
| Gross margin | 30.1% |
| ROIC | 5.4% |
| Total Debt to Equity | 36.2% |
Investment Thesis
ConocoPhillips (COP), with a $119.3B market cap and Quality rating of 6.4, offers an intrinsic value of $131.0. It generates $60.2B revenue and impressive $16.6B free cash flow, with revenue growth at 8.1%, FCF margin of 27.6%, gross margin of 30.1%, and ROIC of 5.4%. Total Debt to Equity stands at 36.2%, providing stability despite a 1Y return of -2.6%. This energy giant excels in oil and gas production, positioning it as a reliable choice in commodities for investment opportunities focused on cash flow strength.
Key Catalysts
- Exceptional FCF $16.6B for dividends and buybacks
- Attractive FCF margin 27.6% in volatile energy markets
- Steady revenue growth 8.1% from production efficiency
- Manageable debt levels 36.2% enhancing financial health
Risk Factors
- Commodity price fluctuations affecting revenue
- Lower 1Y return -2.6% signals short-term energy sector weakness
- Environmental regulations impacting operations
Stock #3: MPLX LP (MPLX)
| Metric | Value |
|---|---|
| Market Cap | $54.8B |
| Quality Rating | 7.2 |
| Intrinsic Value | $105.5 |
| 1Y Return | 12.8% |
| Revenue | $12.1B |
| Free Cash Flow | $6,088.0M |
| Revenue Growth | 11.2% |
| FCF margin | 50.2% |
| Gross margin | 49.0% |
| ROIC | 18.4% |
| Total Debt to Equity | 179.6% |
Investment Thesis
MPLX LP (MPLX) features a $54.8B market cap, Quality rating of 7.2, and intrinsic value of $105.5. Key metrics include $12.1B revenue, $6,088.0M free cash flow, revenue growth of 11.2%, standout FCF margin of 50.2%, gross margin of 49.0%, and ROIC of 18.4%. Despite high Total Debt to Equity at 179.6%, its 1Y return of 12.8% highlights midstream energy resilience, ideal for stock picks in infrastructure.
Key Catalysts
- Superior FCF margin 50.2% driving distributions
- Strong ROIC 18.4% from pipeline assets
- Consistent revenue growth 11.2% via volume increases
- High gross margin 49.0% reflecting asset quality
Risk Factors
- Elevated Total Debt to Equity 179.6% sensitive to rates
- Dependence on energy throughput volumes
- MLP structure tax complexities for some investors
Stock #4: Roper Technologies, Inc. (ROP)
| Metric | Value |
|---|---|
| Market Cap | $46.7B |
| Quality Rating | 6.1 |
| Intrinsic Value | $542.7 |
| 1Y Return | -15.3% |
| Revenue | $7,721.0M |
| Free Cash Flow | $2,460.1M |
| Revenue Growth | 14.0% |
| FCF margin | 31.9% |
| Gross margin | 69.0% |
| ROIC | 5.5% |
| Total Debt to Equity | 47.3% |
Investment Thesis
Roper Technologies, Inc. (ROP) has a $46.7B market cap and Quality rating of 6.1, with an elevated intrinsic value of $542.7. It reports $7,721.0M revenue, $2,460.1M free cash flow, revenue growth of 14.0%, FCF margin of 31.9%, impressive gross margin of 69.0%, and ROIC of 5.5%. Total Debt to Equity is 47.3%, despite a 1Y return of -15.3%, signaling software and industrials potential in undervalued stocks.
Key Catalysts
- Exceptional gross margin 69.0% from SaaS model
- Robust revenue growth 14.0% via acquisitions
- Strong FCF margin 31.9% for reinvestment
- High intrinsic value indicating upside
Risk Factors
- Negative 1Y return -15.3% amid market rotation
- Acquisition integration risks
- Moderate debt 47.3% in rising rate environment
Stock #5: Cheniere Energy, Inc. (LNG)
| Metric | Value |
|---|---|
| Market Cap | $43.6B |
| Quality Rating | 6.4 |
| Intrinsic Value | $396.1 |
| 1Y Return | -9.9% |
| Revenue | $18.7B |
| Free Cash Flow | $4,556.0M |
| Revenue Growth | 16.5% |
| FCF margin | 24.3% |
| Gross margin | 39.2% |
| ROIC | 12.8% |
| Total Debt to Equity | 28.2% |
Investment Thesis
Cheniere Energy, Inc. (LNG) boasts a $43.6B market cap, Quality rating of 6.4, and intrinsic value of $396.1. Metrics show $18.7B revenue, $4,556.0M free cash flow, revenue growth of 16.5%, FCF margin of 24.3%, gross margin of 39.2%, and ROIC of 12.8%. Low Total Debt to Equity of 28.2% supports stability, even with a 1Y return of -9.9%, for LNG export stock ideas.
Key Catalysts
- Rapid revenue growth 16.5% from global demand
- Solid ROIC 12.8% on LNG facilities
- Healthy FCF $4,556.0M for expansion
- Low debt 28.2% bolstering balance sheet
Risk Factors
- Energy price volatility impacting exports
- 1Y return decline -9.9%
- Geopolitical risks in LNG trade
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Stock #6: Smurfit Westrock Plc (SW)
| Metric | Value |
|---|---|
| Market Cap | $20.7B |
| Quality Rating | 5.7 |
| Intrinsic Value | $41.4 |
| 1Y Return | -24.8% |
| Revenue | $30.9B |
| Free Cash Flow | $800.0M |
| Revenue Growth | 89.0% |
| FCF margin | 2.6% |
| Gross margin | 19.6% |
| ROIC | 4.0% |
| Total Debt to Equity | 4.3% |
Investment Thesis
Smurfit Westrock Plc (SW) has a $20.7B market cap, Quality rating of 5.7, and intrinsic value of $41.4. It achieved explosive $30.9B revenue and $800.0M free cash flow, with revenue growth of 89.0%, FCF margin of 2.6%, gross margin of 19.6%, and ROIC of 4.0%. Minimal Total Debt to Equity at 4.3% aids recovery from a -24.8% 1Y return in packaging.
Key Catalysts
- Massive revenue growth 89.0% post-merger
- Low debt 4.3% for flexibility
- Scale benefits in materials sector
- Improving FCF trajectory
Risk Factors
- Weak FCF margin 2.6% needing improvement
- Sharp 1Y decline -24.8%
- Cyclical packaging demand
Stock #7: The Mosaic Company (MOS)
| Metric | Value |
|---|---|
| Market Cap | $7,930.2M |
| Quality Rating | 5.9 |
| Intrinsic Value | $35.1 |
| 1Y Return | 3.6% |
| Revenue | $11.9B |
| Free Cash Flow | ($203.7M) |
| Revenue Growth | 3.8% |
| FCF margin | (1.7%) |
| Gross margin | 15.6% |
| ROIC | 3.2% |
| Total Debt to Equity | 8.9% |
Investment Thesis
The Mosaic Company (MOS), with a $7,930.2M market cap and Quality rating of 5.9, shows intrinsic value of $35.1. It has $11.9B revenue but negative $203.7M free cash flow, revenue growth of 3.8%, FCF margin of 1.7%, gross margin of 15.6%, and ROIC of 3.2%. Low Total Debt to Equity of 8.9% and 3.6% 1Y return suit fertilizers in commodities.
Key Catalysts
- Low debt 8.9% providing stability
- Modest revenue growth 3.8%
- Potential FCF recovery in ag cycle
- Essential role in food production
Risk Factors
- Negative FCF and margin -1.7%
- Commodity price swings
- Low ROIC 3.2%
Stock #8: Amentum Holdings, Inc. (AMTM)
| Metric | Value |
|---|---|
| Market Cap | $7,358.8M |
| Quality Rating | 5.4 |
| Intrinsic Value | $66.4 |
| 1Y Return | 40.7% |
| Revenue | $14.4B |
| Free Cash Flow | $543.0M |
| Revenue Growth | 71.6% |
| FCF margin | 3.8% |
| Gross margin | 6.0% |
| ROIC | 5.1% |
| Total Debt to Equity | 0.9% |
Investment Thesis
Amentum Holdings, Inc. (AMTM) features a $7,358.8M market cap, Quality rating of 5.4, and intrinsic value of $66.4. Strong $14.4B revenue, $543.0M free cash flow, explosive revenue growth of 71.6%, FCF margin of 3.8%, low gross margin of 6.0%, and ROIC of 5.1%. Near-zero Total Debt to Equity 0.9% and 40.7% 1Y return highlight defense services.
Key Catalysts
- Hyper revenue growth 71.6% from contracts
- Minimal debt 0.9%
- Positive FCF $543.0M
- Government backlog stability
Risk Factors
- Thin gross margin 6.0%
- Contract renewal dependencies
- Growth sustainability post-spike
Stock #9: Primoris Services Corporation (PRIM)
| Metric | Value |
|---|---|
| Market Cap | $6,999.9M |
| Quality Rating | 6.6 |
| Intrinsic Value | $153.6 |
| 1Y Return | 70.0% |
| Revenue | $7,458.6M |
| Free Cash Flow | $444.1M |
| Revenue Growth | 21.5% |
| FCF margin | 6.0% |
| Gross margin | 11.0% |
| ROIC | 17.0% |
| Total Debt to Equity | 24.1% |
Investment Thesis
Primoris Services Corporation (PRIM) has a $6,999.9M market cap, top Quality rating of 6.6, and intrinsic value of $153.6. It delivers $7,458.6M revenue, $444.1M free cash flow, revenue growth of 21.5%, FCF margin of 6.0%, gross margin of 11.0%, strong ROIC of 17.0%, and Total Debt to Equity of 24.1%. Stellar 70.0% 1Y return positions it in construction.
Key Catalysts
- Highest ROIC 17.0% among peers
- Robust revenue growth 21.5%
- Strong 1Y performance 70.0%
- Balanced debt 24.1%
Risk Factors
- Low gross margin 11.0% cyclicality
- Project execution risks
- Infrastructure spending variability
Stock #10: Parsons Corporation (PSN)
| Metric | Value |
|---|---|
| Market Cap | $6,691.6M |
| Quality Rating | 5.9 |
| Intrinsic Value | $114.7 |
| 1Y Return | -31.3% |
| Revenue | $6,494.7M |
| Free Cash Flow | $382.8M |
| Revenue Growth | (0.2%) |
| FCF margin | 5.9% |
| Gross margin | 22.0% |
| ROIC | 6.9% |
| Total Debt to Equity | 51.9% |
Investment Thesis
Parsons Corporation (PSN), with $6,691.6M market cap and Quality rating of 5.9, offers intrinsic value of $114.7. Metrics include $6,494.7M revenue, $382.8M free cash flow, slight revenue growth decline of 0.2%, FCF margin of 5.9%, gross margin of 22.0%, ROIC of 6.9%, and Total Debt to Equity of 51.9%. Despite -31.3% 1Y return, defense engineering shows promise.
Key Catalysts
- Steady FCF margin 5.9%
- Improving ROIC 6.9%
- Government contract pipeline
- Solid gross margin 22.0%
Risk Factors
- Revenue contraction -0.2%
- Sharp 1Y drop -31.3%
- Higher debt 51.9%
Portfolio Diversification Insights
These 10 best stocks create a balanced stock watchlist with sector allocation: energy (COP, MPLX, LNG, MOS ~40%), technology/transport (UBER, ROP ~20%), industrials/defense (AMTM, PRIM, PSN ~30%), materials/packaging (SW ~10%). Energy provides cash flow stability, while industrials offer growth synergy with UBER's mobility. High-ROIC names like PRIM and MPLX complement lower-return stabilizers like COP, reducing volatility. Cross-references show energy FCF funding tech expansion, ideal for diversified investment ideas.
Market Timing & Entry Strategies
Consider positions during energy price dips for COP/MPLX/LNG or post-earnings for growth like UBER/AMTM. Dollar-cost average into high-intrinsic value names (ROP, PRIM) on pullbacks below key levels. Monitor ROIC trends and FCF for entry, using ValueSense screeners for backtested timing in undervalued stocks.
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FAQ Section
How were these stocks selected?
These stock picks were chosen via ValueSense screener criteria: Quality rating above 5.4, positive FCF where possible, revenue growth, and trading near/below intrinsic value, focusing on diversified undervalued growth stocks.
What's the best stock from this list?
PRIM leads with 6.6 Quality rating, 70.0% 1Y return, and 17.0% ROIC, though UBER's 91.6% ROIC excels in scale; selection depends on risk tolerance.
Should I buy all these stocks or diversify?
Diversification across sectors like energy and industrials mitigates risks; allocate based on portfolio needs rather than concentrating in one area.
What are the biggest risks with these picks?
Key concerns include high debt (MPLX 179.6%), negative FCF (MOS), commodity volatility (COP, LNG), and cyclical margins (SW, PRIM).
When is the best time to invest in these stocks?
Target dips in energy cycles for COP/LNG, growth spurts post-revenue beats for AMTM/PRIM, using intrinsic value as entry guide via ValueSense tools.