10 Best Biggest Stock Buybacks for February 2026
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Market Overview & Selection Criteria
Global markets show volatility across financials, mining, consumer goods, energy, and automotive sectors, with many large-cap stocks trading below their intrinsic values amid fluctuating commodity prices and economic shifts. ValueSense selected these 10 best stock picks based on high intrinsic value potential, strong ROIC, robust free cash flow, and Quality ratings above 5.0, prioritizing companies with significant 1Y returns and undervaluation gaps for long-term watchlist consideration. This methodology highlights diversified undervalued stocks from the latest ValueSense data, focusing on fundamental strength despite recent revenue pressures in cyclical industries.
Featured Stock Analysis
Stock #1: Banco Santander, S.A. (SAN)
| Metric | Value |
|---|---|
| Market Cap | $189.4B |
| Quality Rating | 6.7 |
| Intrinsic Value | $17.3 |
| 1Y Return | 152.5% |
| Revenue | $75.9B |
| Free Cash Flow | $20.1B |
| Revenue Growth | (3.4%) |
| FCF margin | 26.5% |
| Gross margin | 63.0% |
| ROIC | 25.8% |
| Total Debt to Equity | 288.1% |
Investment Thesis
Banco Santander, S.A. (SAN) stands out with a Quality rating of 6.7 and Market Cap of $189.4B, generating $75.9B in revenue and impressive $20.1B free cash flow at a 26.5% FCF margin. Its intrinsic value of $17.3 suggests undervaluation, backed by a stellar 152.5% 1Y Return, 63.0% gross margin, and 25.8% ROIC. Despite a 3.4% revenue decline, Santander's capital efficiency positions it as a resilient banking play in global finance, ideal for value-focused analysis.
Key Catalysts
- Exceptional 152.5% 1Y Return signals strong momentum
- High 26.5% FCF margin and $20.1B free cash flow for shareholder returns
- 25.8% ROIC and 63.0% gross margin indicate operational excellence
- Massive $189.4B Market Cap provides stability in banking sector
Risk Factors
- High Total Debt to Equity of 288.1% raises leverage concerns
- Negative revenue growth of 3.4% amid economic headwinds
Stock #2: BHP Group Limited (BHP)
| Metric | Value |
|---|---|
| Market Cap | $175.7B |
| Quality Rating | 6.6 |
| Intrinsic Value | $65.8 |
| 1Y Return | 40.9% |
| Revenue | $107.3B |
| Free Cash Flow | $20.7B |
| Revenue Growth | (10.1%) |
| FCF margin | 19.3% |
| Gross margin | 48.7% |
| ROIC | 28.5% |
| Total Debt to Equity | 46.9% |
Investment Thesis
BHP Group Limited (BHP), a mining giant with $175.7B Market Cap, boasts a 6.6 Quality rating and intrinsic value of $65.8. It delivers $107.3B revenue, $20.7B free cash flow (19.3% margin), and top-tier 28.5% ROIC, despite 10.1% revenue drop. The 40.9% 1Y Return underscores its commodity strength, making BHP a core pick for best value stocks in resources.
Key Catalysts
- Solid 28.5% ROIC and 48.7% gross margin for efficiency
- $20.7B free cash flow supports dividends and growth
- 40.9% 1Y Return reflects mining recovery potential
- Large-scale $107.3B revenue base
Risk Factors
- Revenue contraction of 10.1% tied to commodity cycles
- 46.9% Total Debt to Equity in volatile markets
Stock #3: Coca-Cola FEMSA, S.A.B. de C.V. (KOF)
| Metric | Value |
|---|---|
| Market Cap | $175.0B |
| Quality Rating | 6.1 |
| Intrinsic Value | $34.5 |
| 1Y Return | 30.8% |
| Revenue | MX$218.6B |
| Free Cash Flow | MX$6,021.6M |
| Revenue Growth | (18.0%) |
| FCF margin | 2.8% |
| Gross margin | 46.0% |
| ROIC | 35.3% |
| Total Debt to Equity | 53.9% |
Investment Thesis
Coca-Cola FEMSA (KOF) features a $175.0B Market Cap, 6.1 Quality rating, and intrinsic value of $34.5. With MX$218.6B revenue, MX$6,021.6M free cash flow (2.8% margin), and exceptional 35.3% ROIC, it achieved 30.8% 1Y Return despite 18.0% revenue decline. This bottler's high margins position it for consumer staples recovery.
Key Catalysts
- Leading 35.3% ROIC drives capital efficiency
- 46.0% gross margin in beverages sector
- 30.8% 1Y Return amid market resilience
- Strong MX$218.6B revenue scale
Risk Factors
- Sharp 18.0% revenue growth decline
- Low 2.8% FCF margin signals cash pressures
Stock #4: Rio Tinto Group (RIO)
| Metric | Value |
|---|---|
| Market Cap | $149.2B |
| Quality Rating | 6.0 |
| Intrinsic Value | $120.4 |
| 1Y Return | 54.8% |
| Revenue | $107.9B |
| Free Cash Flow | $12.7B |
| Revenue Growth | (5.5%) |
| FCF margin | 11.8% |
| Gross margin | 27.7% |
| ROIC | 26.6% |
| Total Debt to Equity | 38.1% |
Investment Thesis
Rio Tinto Group (RIO) offers $149.2B Market Cap, 6.0 Quality rating, and intrinsic value of $120.4. Key metrics include $107.9B revenue, $12.7B free cash flow (11.8% margin), 26.6% ROIC, and 54.8% 1Y Return, offsetting 5.5% revenue dip. Ideal for commodities stock picks.
Key Catalysts
- Robust 54.8% 1Y Return from iron ore strength
- 26.6% ROIC and $12.7B free cash flow
- Diversified $107.9B revenue in mining
- Conservative 38.1% Total Debt to Equity
Risk Factors
- 5.5% revenue growth slowdown
- Cyclical exposure in metals pricing
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Stock #5: Western Digital Corporation (WDC)
| Metric | Value |
|---|---|
| Market Cap | $87.7B |
| Quality Rating | 7.5 |
| Intrinsic Value | $115.8 |
| 1Y Return | 403.5% |
| Revenue | $10.7B |
| Free Cash Flow | $2,306.0M |
| Revenue Growth | (22.8%) |
| FCF margin | 21.5% |
| Gross margin | 42.7% |
| ROIC | 43.8% |
| Total Debt to Equity | 63.4% |
Investment Thesis
Western Digital (WDC) shines with $87.7B Market Cap, top 7.5 Quality rating, and intrinsic value of $115.8. Despite 22.8% revenue fall, it posts $10.7B revenue, $2,306.0M free cash flow (21.5% margin), 43.8% ROIC, and explosive 403.5% 1Y Return—a standout in tech storage.
Key Catalysts
- Phenomenal 403.5% 1Y Return momentum
- Elite 43.8% ROIC and 21.5% FCF margin
- 42.7% gross margin recovery potential
- Data demand in AI/cloud drives growth
Risk Factors
- Steep 22.8% revenue decline
- 63.4% Total Debt to Equity
Stock #6: General Motors Company (GM)
| Metric | Value |
|---|---|
| Market Cap | $77.4B |
| Quality Rating | 5.8 |
| Intrinsic Value | $163.0 |
| 1Y Return | 70.1% |
| Revenue | $181.5B |
| Free Cash Flow | $11.1B |
| Revenue Growth | (3.2%) |
| FCF margin | 6.1% |
| Gross margin | 6.4% |
| ROIC | 3.3% |
| Total Debt to Equity | 206.2% |
Investment Thesis
General Motors (GM) has $77.4B Market Cap, 5.8 Quality rating, intrinsic value $163.0, $181.5B revenue, $11.1B free cash flow (6.1% margin), and 70.1% 1Y Return. Low 3.3% ROIC and 6.4% gross margin reflect auto challenges, but scale offers value.
Key Catalysts
- Strong 70.1% 1Y Return and $11.1B free cash flow
- Massive $181.5B revenue leadership
- EV transition upside
Risk Factors
- Weak 3.3% ROIC and 6.4% gross margin
- High 206.2% Total Debt to Equity
- 3.2% revenue growth
Stock #7: Equinor ASA (EQNR)
| Metric | Value |
|---|---|
| Market Cap | $70.5B |
| Quality Rating | 5.9 |
| Intrinsic Value | $59.4 |
| 1Y Return | 14.5% |
| Revenue | $263.0B |
| Free Cash Flow | $3,899.2M |
| Revenue Growth | 151.0% |
| FCF margin | 1.5% |
| Gross margin | 32.2% |
| ROIC | 17.0% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Equinor ASA (EQNR) features $70.5B Market Cap, 5.9 Quality rating, intrinsic value $59.4, explosive 151.0% revenue growth to $263.0B, and 14.5% 1Y Return. Zero Total Debt to Equity bolsters balance sheet amid 17.0% ROIC.
Key Catalysts
- Massive 151.0% revenue surge
- Debt-free 0.0% Total Debt to Equity
- 17.0% ROIC in energy
- $263.0B revenue scale
Risk Factors
- Thin 1.5% FCF margin
- Energy price volatility
Stock #8: Eni S.p.A. (E)
| Metric | Value |
|---|---|
| Market Cap | $62.4B |
| Quality Rating | 5.4 |
| Intrinsic Value | $1,095.7 |
| 1Y Return | 43.8% |
| Revenue | €65.3B |
| Free Cash Flow | €3,163.0M |
| Revenue Growth | (27.4%) |
| FCF margin | 4.8% |
| Gross margin | 13.9% |
| ROIC | 1.2% |
| Total Debt to Equity | 58.9% |
Investment Thesis
Eni S.p.A. (E) with $62.4B Market Cap, 5.4 Quality rating, extreme intrinsic value $1,095.7, €65.3B revenue, and 43.8% 1Y Return. Low 1.2% ROIC but €3,163.0M free cash flow (4.8% margin) supports oil/gas analysis.
Key Catalysts
- High 43.8% 1Y Return
- Significant intrinsic value upside
- Steady €65.3B revenue
Risk Factors
- Poor 1.2% ROIC
- 27.4% revenue drop
- 58.9% Total Debt to Equity
Stock #9: Marathon Petroleum Corporation (MPC)
| Metric | Value |
|---|---|
| Market Cap | $53.2B |
| Quality Rating | 6.6 |
| Intrinsic Value | $386.9 |
| 1Y Return | 18.2% |
| Revenue | $134.4B |
| Free Cash Flow | $4,276.0M |
| Revenue Growth | (5.5%) |
| FCF margin | 3.2% |
| Gross margin | 8.1% |
| ROIC | 9.9% |
| Total Debt to Equity | 143.2% |
Investment Thesis
Marathon Petroleum (MPC) holds $53.2B Market Cap, 6.6 Quality rating, intrinsic value $386.9, $134.4B revenue, $4,276.0M free cash flow, and 18.2% 1Y Return. 9.9% ROIC aids refining sector positioning.
Key Catalysts
- Attractive intrinsic value $386.9
- 18.2% 1Y Return stability
- $134.4B revenue in energy
Risk Factors
- Low 3.2% FCF margin, 8.1% gross margin
- 143.2% Total Debt to Equity
- 5.5% revenue growth
Stock #10: Honda Motor Co., Ltd. (HMC)
| Metric | Value |
|---|---|
| Market Cap | $42.4B |
| Quality Rating | 5.6 |
| Intrinsic Value | $72.8 |
| 1Y Return | 5.8% |
| Revenue | ¥21.5T |
| Free Cash Flow | (¥258.1B) |
| Revenue Growth | (0.4%) |
| FCF margin | (1.2%) |
| Gross margin | 20.8% |
| ROIC | 3.4% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Honda Motor (HMC) at $42.4B Market Cap, 5.6 Quality rating, intrinsic value $72.8, ¥21.5T revenue, but negative (¥258.1B) free cash flow (-1.2% margin). 5.8% 1Y Return and 3.4% ROIC highlight auto value potential.
Key Catalysts
- Strong ¥21.5T revenue base
- Zero 0.0% Total Debt to Equity
- 20.8% gross margin
Risk Factors
- Negative free cash flow and 1.2% margin
- Stagnant 0.4% revenue growth
- Low 3.4% ROIC
Portfolio Diversification Insights
These 10 top stocks span banking (SAN), mining (BHP, RIO), beverages (KOF), tech (WDC), autos (GM, HMC), and energy (EQNR, E, MPC), reducing sector risk. Mining duo BHP/RIO (30% allocation) counters energy volatility (EQNR/E/MPC ~25%), while autos (GM/HMC 12%) add cyclical balance. High ROIC leaders like WDC 43.8% complement cash-rich SAN ($20.1B FCF), fostering resilient stock watchlist diversification.
Market Timing & Entry Strategies
Consider positions during commodity dips or post-earnings when intrinsic value gaps widen, using dollar-cost averaging for cyclicals like BHP/RIO. Monitor revenue trends—enter EQNR on energy rebounds, WDC on tech demand. Scale in on 1Y Return pullbacks, aligning with ValueSense metrics for educational entry analysis.
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)
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📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
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FAQ Section
How were these stocks selected?
Selected via ValueSense criteria emphasizing intrinsic value, Quality ratings >5.0, high ROIC, and free cash flow strength for best stock picks.
What's the best stock from this list?
WDC leads with 7.5 Quality rating, 403.5% 1Y Return, and 43.8% ROIC, though all offer unique value analysis.
Should I buy all these stocks or diversify?
Diversify across sectors like mining, energy, and autos to balance risks, using this as educational stock watchlist guidance.
What are the biggest risks with these picks?
Key concerns include high debt (SAN 288.1%, GM 206.2%), revenue declines (most negative), and cyclical exposures in commodities/energy.
When is the best time to invest in these stocks?
Target dips in commodity cycles or revenue recoveries, focusing on intrinsic value gaps for strategic, analysis-based timing.