10 Best Undervalued Stocks With Great Momentum 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 landscape is defined by rapid technological innovation, resilient healthcare demand, and shifting commodity cycles. Our selection methodology emphasizes intrinsic value, quality ratings, and momentum, focusing on stocks with robust fundamentals, attractive valuations, and sector leadership. Each pick is screened for financial health, growth potential, and risk profile using ValueSense’s proprietary analytics, ensuring a diversified and opportunity-rich watchlist.
Featured Stock Analysis
Stock #1: Taiwan Semiconductor Manufacturing Company Limited (TSM)
| Metric | Value |
|---|---|
| Market Cap | $1,554.9B |
| Quality Rating | 8.3 |
| Intrinsic Value | $398.9 |
| 1Y Return | 60.3% |
| Revenue | NT$3,401.2B |
| Free Cash Flow | NT$947.9B |
| Revenue Growth | 39.5% |
| FCF margin | 27.9% |
| Gross margin | 58.6% |
| ROIC | 34.6% |
| Total Debt to Equity | 0.0% |
Investment Thesis
TSMC stands as the world’s leading pure-play semiconductor foundry, powering global technology giants with advanced chip manufacturing. With a market cap of $1,554.9B and a quality rating of 8.3, TSMC’s scale, technological edge, and customer base (including Apple and Nvidia) position it at the heart of the digital economy. The company’s intrinsic value $398.9 suggests further upside, supported by a 1-year return of 60.3% and stellar financials: NT$3,401.2B revenue, NT$947.9B free cash flow, and a 39.5% revenue growth rate.
Key Catalysts
- Leadership in advanced process nodes (3nm, 5nm) and AI chip demand
- Expanding global capacity and strategic partnerships
- Strong free cash flow (27.9% FCF margin) and high profitability (58.6% gross margin)
- Zero debt (0.0% total debt to equity), enabling flexibility for R&D and expansion
Risk Factors
- Geopolitical tensions in Taiwan and global supply chain risks
- Cyclical semiconductor demand and potential overcapacity
- High capital expenditure requirements
Stock #2: SAP SE (SAP)
| Metric | Value |
|---|---|
| Market Cap | $314.8B |
| Quality Rating | 6.9 |
| Intrinsic Value | $309.2 |
| 1Y Return | 17.6% |
| Revenue | €35.9B |
| Free Cash Flow | €6,491.0M |
| Revenue Growth | 10.3% |
| FCF margin | 18.1% |
| Gross margin | 73.5% |
| ROIC | 15.1% |
| Total Debt to Equity | 21.2% |
Investment Thesis
SAP is a global leader in enterprise software, driving digital transformation for businesses worldwide. With a market cap of $314.8B and a quality rating of 6.9, SAP’s cloud transition and recurring revenue model underpin its stability and growth. The intrinsic value $309.2 aligns closely with current market levels, while a 1-year return of 17.6% reflects steady performance. Financials are robust: €35.9B revenue, €6,491.0M free cash flow, and 10.3% revenue growth.
Key Catalysts
- Accelerating cloud adoption and SaaS revenue streams
- High profitability (73.5% gross margin) and efficient capital allocation (15.1% ROIC)
- Expanding global enterprise client base
Risk Factors
- Intense competition from other cloud software providers
- Currency fluctuations impacting Euro-denominated results
- Execution risk in large-scale digital transformation projects
Stock #3: Cisco Systems, Inc. (CSCO)
| Metric | Value |
|---|---|
| Market Cap | $273.6B |
| Quality Rating | 6.9 |
| Intrinsic Value | $77.8 |
| 1Y Return | 23.4% |
| Revenue | $56.7B |
| Free Cash Flow | $13.3B |
| Revenue Growth | 5.3% |
| FCF margin | 23.5% |
| Gross margin | 65.1% |
| ROIC | 13.3% |
| Total Debt to Equity | 63.3% |
Investment Thesis
Cisco is a foundational player in networking hardware, software, and cybersecurity. With a market cap of $273.6B and a quality rating of 6.9, Cisco’s diversified product suite and recurring service revenues drive resilience. The intrinsic value $77.8 offers a margin of safety, and a 1-year return of 23.4% signals solid momentum. Key metrics include $56.7B revenue, $13.3B free cash flow, and 5.3% revenue growth.
Key Catalysts
- Growth in cloud networking and cybersecurity demand
- High free cash flow generation (23.5% FCF margin)
- Strong gross margin (65.1%) and global enterprise reach
Risk Factors
- Competitive pressures from new entrants and cloud-native providers
- Hardware supply chain disruptions
- Elevated debt levels (63.3% total debt to equity)
Stock #4: Novartis AG (NVS)
| Metric | Value |
|---|---|
| Market Cap | $254.7B |
| Quality Rating | 7.3 |
| Intrinsic Value | $141.9 |
| 1Y Return | 12.2% |
| Revenue | $54.6B |
| Free Cash Flow | $16.8B |
| Revenue Growth | 13.3% |
| FCF margin | 30.8% |
| Gross margin | 56.0% |
| ROIC | 20.0% |
| Total Debt to Equity | 77.6% |
Investment Thesis
Novartis is a global pharmaceutical leader with a focus on innovative medicines. The company’s market cap of $254.7B and quality rating of 7.3 reflect its strong R&D pipeline and consistent cash flow. With an intrinsic value of $141.9 and a 1-year return of 12.2%, Novartis offers defensive growth. Financial highlights include $54.6B revenue, $16.8B free cash flow, and 13.3% revenue growth.
Key Catalysts
- New drug approvals and expanding therapeutic areas
- High free cash flow margin (30.8%) and solid gross margin (56.0%)
- Strong return on invested capital (20.0% ROIC)
Risk Factors
- Patent expirations and generic competition
- Regulatory and pricing pressures
- High debt-to-equity ratio (77.6%)
Stock #5: Micron Technology, Inc. (MU)
| Metric | Value |
|---|---|
| Market Cap | $226.0B |
| Quality Rating | 8.4 |
| Intrinsic Value | $333.8 |
| 1Y Return | 85.6% |
| Revenue | $37.4B |
| Free Cash Flow | $8,929.0M |
| Revenue Growth | 48.9% |
| FCF margin | 23.9% |
| Gross margin | 39.8% |
| ROIC | 19.6% |
| Total Debt to Equity | 28.5% |
Investment Thesis
Micron is a leading memory and storage solutions provider, benefiting from secular growth in data centers, AI, and mobile devices. With a market cap of $226.0B and a quality rating of 8.4, Micron’s intrinsic value $333.8 and 1-year return of 85.6% highlight its strong momentum. Financials are impressive: $37.4B revenue, $8,929.0M free cash flow, and 48.9% revenue growth.
Key Catalysts
- AI-driven demand for high-performance memory
- Expanding product portfolio and technology leadership
- Strong free cash flow (23.9% margin) and improving margins
Risk Factors
- Cyclical memory pricing and inventory risks
- Capital intensity of semiconductor manufacturing
- Moderate debt levels (28.5% total debt to equity)
Stock #6: American Express Company (AXP)
| Metric | Value |
|---|---|
| Market Cap | $225.5B |
| Quality Rating | 6.2 |
| Intrinsic Value | $363.5 |
| 1Y Return | 15.7% |
| Revenue | $76.9B |
| Free Cash Flow | $11.1B |
| Revenue Growth | 8.1% |
| FCF margin | 14.4% |
| Gross margin | 82.5% |
| ROIC | (121.9%) |
| Total Debt to Equity | 184.8% |
Investment Thesis
American Express is a premier global payments and financial services provider. With a market cap of $225.5B and a quality rating of 6.2, AXP’s intrinsic value $363.5 and 1-year return of 15.7% reflect its brand strength and customer loyalty. Key financials: $76.9B revenue, $11.1B free cash flow, and 8.1% revenue growth.
Key Catalysts
- Growth in premium card membership and travel spending
- Industry-leading gross margin (82.5%)
- Strong brand and global network
Risk Factors
- High leverage (184.8% total debt to equity)
- Sensitivity to economic cycles and consumer credit risk
- Negative ROIC (-121.9%), indicating capital efficiency concerns
Stock #7: Abbott Laboratories (ABT)
| Metric | Value |
|---|---|
| Market Cap | $222.1B |
| Quality Rating | 6.9 |
| Intrinsic Value | $152.6 |
| 1Y Return | 8.9% |
| Revenue | $43.8B |
| Free Cash Flow | $4,626.0M |
| Revenue Growth | 6.4% |
| FCF margin | 10.6% |
| Gross margin | 55.0% |
| ROIC | 25.0% |
| Total Debt to Equity | N/A |
Investment Thesis
Abbott is a diversified healthcare company with leadership in diagnostics, medical devices, and nutrition. With a market cap of $222.1B and a quality rating of 6.9, Abbott’s intrinsic value $152.6 and 1-year return of 8.9% highlight its defensive qualities. Financials include $43.8B revenue, $4,626.0M free cash flow, and 6.4% revenue growth.
Key Catalysts
- Innovation in diagnostics and medical devices
- High gross margin (55.0%) and strong ROIC (25.0%)
- Global healthcare demand
Risk Factors
- Pricing pressures in healthcare markets
- Regulatory and reimbursement risks
- Free cash flow margin is moderate (10.6%)
Stock #8: Shell plc (SHEL)
| Metric | Value |
|---|---|
| Market Cap | $212.3B |
| Quality Rating | 6.1 |
| Intrinsic Value | $109.8 |
| 1Y Return | 9.4% |
| Revenue | $272.0B |
| Free Cash Flow | $28.7B |
| Revenue Growth | (9.9%) |
| FCF margin | 10.5% |
| Gross margin | 18.5% |
| ROIC | 10.5% |
| Total Debt to Equity | 41.3% |
Investment Thesis
Shell is a global energy major with a diversified portfolio across oil, gas, and renewables. With a market cap of $212.3B and a quality rating of 6.1, Shell’s intrinsic value $109.8 and 1-year return of 9.4% reflect its resilience amid energy transition. Financials: $272.0B revenue, $28.7B free cash flow, but 9.9% revenue growth due to commodity price volatility.
Key Catalysts
- Energy transition investments and renewables growth
- High free cash flow generation
- Strategic asset portfolio and global reach
Risk Factors
- Commodity price swings and cyclical earnings
- Environmental and regulatory risks
- Moderate leverage (41.3% total debt to equity)
Stock #9: Uber Technologies, Inc. (UBER)
| Metric | Value |
|---|---|
| Market Cap | $193.5B |
| Quality Rating | 7.4 |
| Intrinsic Value | $204.8 |
| 1Y Return | 13.0% |
| Revenue | $47.3B |
| Free Cash Flow | $8,540.0M |
| Revenue Growth | 18.2% |
| FCF margin | 18.0% |
| Gross margin | 39.7% |
| ROIC | 66.4% |
| Total Debt to Equity | 52.2% |
Investment Thesis
Uber is a global leader in ride-hailing and mobility services, rapidly expanding into delivery and logistics. With a market cap of $193.5B and a quality rating of 7.4, Uber’s intrinsic value $204.8 and 1-year return of 13.0% highlight its growth trajectory. Financials: $47.3B revenue, $8,540.0M free cash flow, and 18.2% revenue growth.
Key Catalysts
- Expansion into new mobility and delivery markets
- High ROIC (66.4%) and improving profitability
- Strong brand and global network effects
Risk Factors
- Regulatory and labor classification challenges
- Competitive pressures in mobility and delivery
- Moderate leverage (52.2% total debt to equity)
Stock #10: The Boeing Company (BA)
| Metric | Value |
|---|---|
| Market Cap | $160.3B |
| Quality Rating | 5.8 |
| Intrinsic Value | $235.7 |
| 1Y Return | 36.8% |
| Revenue | $75.3B |
| Free Cash Flow | ($8,117.0M) |
| Revenue Growth | 2.4% |
| FCF margin | (10.8%) |
| Gross margin | (0.3%) |
| ROIC | (8.3%) |
| Total Debt to Equity | (1,617.8%) |
Investment Thesis
Boeing is a leading aerospace and defense company, critical to global aviation infrastructure. With a market cap of $160.3B and a quality rating of 5.8, Boeing’s intrinsic value $235.7 and 1-year return of 36.8% reflect recovery potential. However, financials show $75.3B revenue, $8,117.0M free cash flow, and 2.4% revenue growth, indicating ongoing challenges.
Key Catalysts
- Commercial aviation recovery and new aircraft deliveries
- Defense and space segment growth
- Strong order backlog
Risk Factors
- Negative free cash flow and gross margin (-0.3%)
- High leverage (-1,617.8% total debt to equity)
- Execution and regulatory risks
Portfolio Diversification Insights
This watchlist spans technology, healthcare, financials, energy, and industrials, providing sector diversification to mitigate risk. Technology leaders (TSM, MU, CSCO) offer growth and innovation exposure, while healthcare (NVS, ABT) and financials (AXP) add defensive and income characteristics. Energy (SHEL) and mobility (UBER) provide cyclical and secular growth, and industrials (BA) offer recovery potential. The blend of high-quality, growth, and value stocks aims to balance volatility and return potential.
Market Timing & Entry Strategies
Market timing is inherently challenging, but dollar-cost averaging and staged entries can help manage volatility. Consider monitoring technical support levels, sector rotation trends, and macroeconomic signals. For high-momentum stocks (TSM, MU), watch for pullbacks or consolidation phases. Defensive names (NVS, ABT) may be suited for steady accumulation, while cyclical and recovery plays (BA, SHEL) require close attention to industry news and earnings cycles.
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?
These stocks were chosen using ValueSense’s proprietary screening, focusing on intrinsic value, quality ratings, financial health, and sector leadership based on the latest available data.
Q2: What's the best stock from this list?
While each stock offers unique strengths, TSM and MU stand out for their high quality ratings, strong momentum, and leadership in the semiconductor sector. However, suitability depends on individual investment goals.
Q3: Should I buy all these stocks or diversify?
Diversification across sectors and risk profiles is recommended for educational purposes. This watchlist is designed to illustrate how a balanced portfolio can reduce risk and capture multiple growth drivers.
Q4: What are the biggest risks with these picks?
Risks include sector-specific challenges (e.g., regulatory, cyclical demand), company-specific issues (e.g., debt, negative cash flow), and broader market volatility. Each stock’s risk factors are detailed in its analysis section.
Q5: When is the best time to invest in these stocks?
Optimal timing varies by stock and market conditions. Consider dollar-cost averaging, monitoring technical trends, and aligning entries with your investment strategy and risk tolerance.
For more in-depth analysis and real-time updates, visit ValueSense and explore our full suite of research tools and stock ideas.