10 Best Online Betting for February 2026
Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io
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 presents compelling opportunities for value-focused investors seeking undervalued stocks with strong fundamentals and growth potential. This curated collection spans multiple sectors—technology, gaming and entertainment, and sports betting—reflecting the diversification principles essential for balanced portfolio construction.[2]
Our selection methodology prioritizes companies demonstrating strong free cash flow generation, reasonable debt levels, and revenue growth trajectories that suggest sustainable competitive advantages. Each stock has been evaluated using ValueSense's intrinsic value framework, which identifies securities trading below their fundamental worth while maintaining quality metrics that indicate operational excellence and management effectiveness.
Featured Stock Analysis
Stock #1: Apple Inc. (AAPL)
| Metric | Value |
|---|---|
| Market Cap | $3,772.6B |
| Quality Rating | 7.4 |
| Intrinsic Value | $100.0 |
| 1Y Return | 9.3% |
| Revenue | $435.6B |
| Free Cash Flow | $123.3B |
| Revenue Growth | 10.1% |
| FCF margin | 28.3% |
| Gross margin | 47.3% |
| ROIC | 205.7% |
| Total Debt to Equity | 102.6% |
Investment Thesis
Apple represents a blue-chip technology leader with exceptional financial strength and consistent cash generation capabilities. With a market capitalization of $3,772.6B and a quality rating of 7.4, AAPL demonstrates the hallmarks of a mature, profitable enterprise. The company generated $435.6B in annual revenue with an impressive 10.1% revenue growth rate, supported by a robust free cash flow of $123.3B—the highest among all featured stocks. This exceptional cash generation reflects Apple's pricing power and operational efficiency in the highly competitive consumer electronics and services market.
The company's gross margin of 47.3% and free cash flow margin of 28.3% underscore its ability to convert revenue into shareholder value. With a return on invested capital (ROIC) of 205.7%, Apple demonstrates extraordinary capital efficiency, indicating that every dollar invested generates substantial returns. The intrinsic value estimate of $100.0 provides a reference point for fundamental valuation analysis.
Key Catalysts
- Continued services revenue expansion and recurring subscription growth
- Innovation in artificial intelligence and machine learning integration across product lines
- International market expansion, particularly in emerging economies
- Wearables and ecosystem expansion driving higher customer lifetime value
- Share buyback programs supporting shareholder returns
Risk Factors
- Elevated debt-to-equity ratio of 102.6% requires monitoring of capital structure
- Mature smartphone market with potential saturation in developed regions
- Competitive pressure from alternative technology platforms and manufacturers
- Regulatory scrutiny regarding app store practices and market dominance
- Supply chain concentration risks and geopolitical dependencies
Stock #2: GigaCloud Technology Inc. (GCT)
| Metric | Value |
|---|---|
| Market Cap | $1,510.5M |
| Quality Rating | 7.5 |
| Intrinsic Value | $131.9 |
| 1Y Return | 75.8% |
| Revenue | $1,222.9M |
| Free Cash Flow | $188.1M |
| Revenue Growth | 10.2% |
| FCF margin | 15.4% |
| Gross margin | 23.1% |
| ROIC | 21.3% |
| Total Debt to Equity | 101.0% |
Investment Thesis
GigaCloud Technology emerges as a high-growth technology play with exceptional recent performance and strong quality fundamentals. The company achieved a remarkable 75.8% one-year return, significantly outpacing broader market indices. With a quality rating of 7.5 and an intrinsic value of $131.9, GCT demonstrates compelling value characteristics. The company generated $1,222.9M in revenue with 10.2% growth, supported by $188.1M in free cash flow and a healthy 15.4% FCF margin.
The business model exhibits strong operational leverage, with a ROIC of 21.3% indicating efficient capital deployment. GCT's market cap of $1,510.5M positions it as a mid-cap opportunity with meaningful growth runway. The company's ability to generate consistent free cash flow while maintaining reasonable leverage (101.0% debt-to-equity) suggests sustainable business operations and financial stability.
Key Catalysts
- Expansion into new geographic markets and customer segments
- Technology infrastructure investments driving operational efficiency
- Strategic partnerships and enterprise customer acquisition
- Cloud services adoption acceleration across industries
- Potential margin expansion through scale and operational optimization
Risk Factors
- Mid-cap volatility and liquidity considerations relative to larger peers
- Competitive intensity in technology services and cloud infrastructure markets
- Execution risk on growth initiatives and market expansion strategies
- Potential margin compression from competitive pricing pressures
- Technology disruption and rapid industry evolution
Stock #3: Rush Street Interactive, Inc. (RSI)
| Metric | Value |
|---|---|
| Market Cap | $5,181.1M |
| Quality Rating | 7.2 |
| Intrinsic Value | $6.0 |
| 1Y Return | 23.6% |
| Revenue | $1,063.7M |
| Free Cash Flow | $66.0M |
| Revenue Growth | 23.1% |
| FCF margin | 6.2% |
| Gross margin | 34.2% |
| ROIC | 116.5% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Rush Street Interactive represents a high-growth gaming and entertainment opportunity with exceptional return on invested capital and zero debt. The company achieved a 23.6% one-year return with a quality rating of 7.2, demonstrating strong operational execution. RSI generated $1,063.7M in revenue with an impressive 23.1% growth rate, reflecting robust demand for online gaming and sports betting platforms. The company's ROIC of 116.5% stands among the highest in the portfolio, indicating exceptional capital efficiency and competitive advantages.
With zero debt-to-equity ratio, RSI maintains a fortress balance sheet that provides strategic flexibility for growth investments, acquisitions, or shareholder returns. The company generated $66.0M in free cash flow with a 6.2% FCF margin, demonstrating the ability to convert revenue growth into cash generation. The intrinsic value of $6.0 provides a reference point for fundamental analysis of this growth-oriented enterprise.
Key Catalysts
- Expansion of online sports betting into new state markets
- Growth in iGaming (online casino) offerings and player acquisition
- Mobile platform optimization and user experience enhancements
- Strategic partnerships with sports leagues and media companies
- Potential consolidation opportunities in fragmented online gaming market
Risk Factors
- Regulatory uncertainty regarding online gaming and sports betting legality
- Intense competition from established gaming operators and new entrants
- Customer acquisition cost inflation and marketing expense pressures
- Player retention challenges in competitive online gaming environment
- Potential adverse changes to state-level gaming regulations
Stock #4: Churchill Downs Incorporated (CHDN)
| Metric | Value |
|---|---|
| Market Cap | $6,791.0M |
| Quality Rating | 7.1 |
| Intrinsic Value | $75.8 |
| 1Y Return | -21.7% |
| Revenue | $2,884.2M |
| Free Cash Flow | $675.0M |
| Revenue Growth | 8.0% |
| FCF margin | 23.4% |
| Gross margin | 48.9% |
| ROIC | 11.4% |
| Total Debt to Equity | 473.2% |
Investment Thesis
Churchill Downs operates as a diversified gaming and entertainment enterprise with established market presence and strong free cash flow generation. The company carries a quality rating of 7.1 with a market cap of $6,791.0M. CHDN generated $2,884.2M in revenue with 8.0% growth, supported by $675.0M in free cash flow—demonstrating robust cash generation capabilities. The 23.4% free cash flow margin reflects operational efficiency and the cash-generative nature of gaming and entertainment operations.
The company's gross margin of 48.9% and ROIC of 11.4% indicate solid operational performance and capital efficiency. Churchill Downs' intrinsic value of $75.8 provides a valuation reference point for this established gaming operator. The company's diversified portfolio spanning horse racing, casino operations, and online gaming provides revenue stability across multiple channels.
Key Catalysts
- Expansion of online gaming and sports betting platforms
- Integration of recent acquisitions and synergy realization
- Venue modernization and customer experience enhancements
- Growth in sports betting handle and gaming revenue
- Potential dividend increases supported by strong cash flow
Risk Factors
- Elevated debt-to-equity ratio of 473.2% indicates significant financial leverage
- Regulatory changes affecting gaming operations and taxation
- Competition from tribal casinos and regional gaming operators
- Economic sensitivity of discretionary gaming spending
- Potential decline in horse racing participation and attendance
Stock #5: Light & Wonder, Inc. (LNW)
| Metric | Value |
|---|---|
| Market Cap | $8,828.4M |
| Quality Rating | 6.7 |
| Intrinsic Value | $104.4 |
| 1Y Return | 22.9% |
| Revenue | $3,221.0M |
| Free Cash Flow | $389.0M |
| Revenue Growth | 1.9% |
| FCF margin | 12.1% |
| Gross margin | 60.5% |
| ROIC | 13.5% |
| Total Debt to Equity | 11.2% |
Investment Thesis
Light & Wonder represents a premium gaming and entertainment operator with strong fundamentals and positive recent performance. The company achieved a 22.9% one-year return with a quality rating of 6.7 and market cap of $8,828.4M. LNW generated $3,221.0M in revenue with conservative 1.9% growth, reflecting a mature but stable business model. The company's exceptional gross margin of 60.5% demonstrates pricing power and operational excellence in gaming and entertainment services.
With $389.0M in free cash flow and a 12.1% FCF margin, Light & Wonder generates consistent cash returns to shareholders. The company maintains a conservative debt-to-equity ratio of 11.2%, providing financial flexibility and stability. The intrinsic value of $104.4 reflects the company's strong fundamental position and cash generation capabilities.
Key Catalysts
- Digital transformation and online gaming platform expansion
- International market expansion and geographic diversification
- Gaming machine innovation and content development
- Potential strategic acquisitions or partnerships
- Dividend growth supported by stable cash flow generation
Risk Factors
- Mature market dynamics with limited organic growth opportunities
- Regulatory changes affecting gaming operations and taxation
- Technology disruption from alternative entertainment options
- Economic sensitivity of discretionary gaming spending
- Competitive intensity from other gaming operators
Stock #6: Super Group (SGHC) Limited (SGHC)
| Metric | Value |
|---|---|
| Market Cap | $4,779.1M |
| Quality Rating | 6.8 |
| Intrinsic Value | $7.8 |
| 1Y Return | 14.6% |
| Revenue | €2,070.5M |
| Free Cash Flow | €0.0 |
| Revenue Growth | 33.0% |
| FCF margin | 0.0% |
| Gross margin | 50.5% |
| ROIC | 88.6% |
| Total Debt to Equity | 9.7% |
Investment Thesis
Super Group represents a high-growth international gaming platform with exceptional revenue expansion and strong capital efficiency. The company achieved a 14.6% one-year return with a quality rating of 6.8 and market cap of $4,779.1M. SGHC generated €2,070.5M in revenue with an impressive 33.0% growth rate—the highest among all featured stocks—reflecting strong demand for online gaming and sports betting services. The company's gross margin of 50.5% demonstrates solid operational performance and pricing power.
With a ROIC of 88.6%, Super Group exhibits exceptional capital efficiency and competitive advantages in the online gaming market. The company maintains a conservative debt-to-equity ratio of 9.7%, providing financial stability and strategic flexibility. The intrinsic value of $7.8 provides a valuation reference point for this high-growth enterprise.
Key Catalysts
- Continued international expansion into new gaming markets
- Platform technology enhancements and user experience improvements
- Strategic partnerships with sports leagues and content providers
- Potential market consolidation opportunities
- Regulatory approvals in new jurisdictions
Risk Factors
- Zero free cash flow generation despite revenue growth indicates cash burn or reinvestment
- Regulatory uncertainty in multiple international jurisdictions
- Currency exchange rate fluctuations affecting euro-denominated revenues
- Intense competition from established and emerging gaming platforms
- Potential adverse regulatory changes affecting online gaming operations
Most investors waste time on the wrong metrics. We've spent 10,000+ hours perfecting our value investing engine to find what actually matters.
Want to see what we'll uncover next - before everyone else does?
Find Hidden Gems First!
Stock #7: Flutter Entertainment plc (FLUT)
| Metric | Value |
|---|---|
| Market Cap | $29.4B |
| Quality Rating | 5.4 |
| Intrinsic Value | $86.8 |
| 1Y Return | -39.3% |
| Revenue | $15.4B |
| Free Cash Flow | $913.0M |
| Revenue Growth | 18.0% |
| FCF margin | 5.9% |
| Gross margin | 46.1% |
| ROIC | 0.1% |
| Total Debt to Equity | 127.9% |
Investment Thesis
Flutter Entertainment operates as a global online gaming and sports betting leader with significant scale and diversified revenue streams. The company carries a quality rating of 5.4 with a market cap of $29.4B—the second-largest in this portfolio. FLUT generated $15.4B in revenue with 18.0% growth, supported by $913.0M in free cash flow. The company's gross margin of 46.1% reflects competitive market dynamics in the online gaming sector.
Flutter's intrinsic value of $86.8 provides a valuation reference point for this large-cap gaming operator. The company's global presence across multiple jurisdictions provides revenue diversification and reduces regulatory concentration risk. However, the company's ROIC of 0.1% and elevated debt-to-equity ratio of 127.9% warrant careful consideration of capital efficiency and financial leverage.
Key Catalysts
- North American market expansion and sports betting growth
- Integration of recent acquisitions and synergy realization
- Technology platform improvements and cost optimization
- Potential dividend resumption as leverage improves
- Regulatory approvals in new markets
Risk Factors
- Negative one-year return of -39.3% reflects recent market challenges
- Minimal return on invested capital suggests capital efficiency concerns
- Elevated debt levels and leverage ratios
- Intense competitive pressure in online gaming markets
- Regulatory uncertainty across multiple jurisdictions
- Potential further market share erosion to competitors
Stock #8: DraftKings Inc. (DKNG)
| Metric | Value |
|---|---|
| Market Cap | $14.0B |
| Quality Rating | 5.0 |
| Intrinsic Value | $28.6 |
| 1Y Return | -35.6% |
| Revenue | $5,458.1M |
| Free Cash Flow | $654.1M |
| Revenue Growth | 18.5% |
| FCF margin | 12.0% |
| Gross margin | 39.2% |
| ROIC | (10.9%) |
| Total Debt to Equity | 181.5% |
Investment Thesis
DraftKings represents a leading sports betting and iGaming platform with strong brand recognition and market position. The company carries a quality rating of 5.0 with a market cap of $14.0B. DKNG generated $5,458.1M in revenue with 18.5% growth, demonstrating robust demand for sports betting and online gaming services. The company generated $654.1M in free cash flow with a 12.0% FCF margin, indicating improving cash generation as the business matures.
The company's intrinsic value of $28.6 provides a valuation reference point for this growth-oriented gaming platform. However, the negative ROIC of -10.9% and elevated debt-to-equity ratio of 181.5% indicate capital efficiency challenges and significant financial leverage that warrant careful monitoring.
Key Catalysts
- Continued sports betting market expansion and market share gains
- iGaming platform growth and player acquisition
- Potential profitability improvements and margin expansion
- Strategic partnerships with sports leagues and media companies
- Potential consolidation or strategic transactions
Risk Factors
- Negative one-year return of -35.6% reflects recent market challenges
- Negative return on invested capital indicates capital destruction concerns
- High debt levels and leverage ratios limiting financial flexibility
- Intense competition from established and emerging sports betting operators
- Regulatory uncertainty regarding sports betting and iGaming
- Customer acquisition cost inflation and marketing pressures
Stock #9: Genius Sports Limited (GENI)
| Metric | Value |
|---|---|
| Market Cap | $2,312.5M |
| Quality Rating | 6.1 |
| Intrinsic Value | $11.5 |
| 1Y Return | -2.7% |
| Revenue | $604.5M |
| Free Cash Flow | $50.5M |
| Revenue Growth | 30.7% |
| FCF margin | 8.3% |
| Gross margin | 21.9% |
| ROIC | (16.3%) |
| Total Debt to Equity | 4.2% |
Investment Thesis
Genius Sports operates as a sports data and technology platform provider serving the gaming and sports betting industry. The company carries a quality rating of 6.1 with a market cap of $2,312.5M. GENI generated $604.5M in revenue with an exceptional 30.7% growth rate, reflecting strong demand for sports data and technology solutions. The company's gross margin of 21.9% reflects the competitive nature of data and technology services.
The company generated $50.5M in free cash flow with an 8.3% FCF margin, demonstrating improving cash generation. The intrinsic value of $11.5 provides a valuation reference point for this growth-oriented technology provider. However, the negative ROIC of -16.3% and minimal debt-to-equity ratio of 4.2% indicate capital efficiency challenges despite strong revenue growth.
Key Catalysts
- Expansion of sports data and analytics offerings
- International market expansion and customer acquisition
- Technology platform enhancements and product innovation
- Potential strategic partnerships with gaming operators
- Margin expansion as the business scales
Risk Factors
- Negative return on invested capital indicates capital efficiency concerns
- Competitive pressure from alternative data providers
- Customer concentration risk with major gaming operators
- Technology disruption and rapid industry evolution
- Potential margin compression from competitive pricing
- Execution risk on growth initiatives
Stock #10: Brightstar Lottery (BRSL)
| Metric | Value |
|---|---|
| Market Cap | $2,880.6M |
| Quality Rating | 6.2 |
| Intrinsic Value | $48.8 |
| 1Y Return | 2.3% |
| Revenue | $2,494.0M |
| Free Cash Flow | $89.2M |
| Revenue Growth | 8.6% |
| FCF margin | 3.6% |
| Gross margin | 43.4% |
| ROIC | 11.8% |
| Total Debt to Equity | 314.3% |
Investment Thesis
Brightstar Lottery operates in the gaming and lottery services sector with established market presence and consistent cash generation. The company carries a quality rating of 6.2 with a market cap of $2,880.6M. BRSL generated $2,494.0M in revenue with 8.6% growth, supported by $89.2M in free cash flow. The company's gross margin of 43.4% reflects operational performance in the gaming and lottery services market.
The company's intrinsic value of $48.8 provides a valuation reference point for this established gaming operator. The one-year return of 2.3% reflects stable but modest performance. However, the elevated debt-to-equity ratio of 314.3% and low free cash flow margin of 3.6% indicate significant financial leverage and limited cash generation relative to revenue.
Key Catalysts
- Expansion of digital lottery and gaming offerings
- International market expansion opportunities
- Technology platform modernization
- Potential strategic partnerships or acquisitions
- Operational efficiency improvements
Risk Factors
- Elevated debt-to-equity ratio of 314.3% indicates significant financial leverage
- Low free cash flow margin suggests limited cash generation
- Regulatory changes affecting lottery and gaming operations
- Competition from alternative gaming and entertainment options
- Economic sensitivity of discretionary gaming spending
- Technology disruption from digital gaming platforms
Portfolio Diversification Insights
This curated collection demonstrates strategic sector diversification across three primary categories: technology, gaming and entertainment, and sports betting platforms. The portfolio construction reflects the principle that diversification reduces concentration risk while maintaining exposure to high-growth opportunities.
Sector Allocation:
The technology segment (AAPL, GCT) provides exposure to secular growth trends and strong cash generation, with combined market capitalization of $5,283.1B. These companies demonstrate exceptional capital efficiency and financial strength, serving as portfolio anchors.
The gaming and entertainment segment (LNW, CHDN, BRSL) represents established operators with mature business models, consistent cash generation, and dividend potential. These companies provide portfolio stability and income characteristics.
The sports betting and iGaming segment (RSI, SGHC, FLUT, DKNG, GENI) captures high-growth opportunities in rapidly expanding markets. This segment exhibits higher growth rates (18-33%) but also elevated leverage and competitive intensity. The diversification across multiple platforms reduces single-company risk while maintaining exposure to industry tailwinds.
Quality and Financial Strength:
The portfolio includes companies with quality ratings ranging from 5.0 to 7.5, balancing growth opportunities with operational excellence. Companies like AAPL, GCT, and RSI demonstrate exceptional capital efficiency (ROIC >100%), while others like FLUT and DKNG show capital efficiency challenges requiring monitoring.
Free cash flow generation varies significantly across the portfolio, from AAPL's exceptional $123.3B to GENI's $50.5M. This diversity reflects different business models and maturity stages, with mature companies generating substantial cash while growth companies reinvest heavily in expansion.
Market Timing & Entry Strategies
Dollar-Cost Averaging Approach:
For investors seeking to build positions across this diversified portfolio, a dollar-cost averaging strategy reduces timing risk and smooths entry prices across market cycles. This approach involves investing fixed amounts at regular intervals, allowing investors to accumulate shares during both market strength and weakness.
Sector Rotation Considerations:
The current market environment suggests considering tactical allocation adjustments based on sector performance cycles. Technology stocks like AAPL and GCT may benefit from continued innovation cycles, while gaming stocks may experience cyclical pressures during economic uncertainty. Rotating between sectors based on relative valuation and momentum can enhance risk-adjusted returns.
Valuation-Based Entry Points:
Each stock's intrinsic value estimate provides a reference framework for entry decisions. Investors might consider initiating positions when market prices trade at meaningful discounts to intrinsic value estimates, providing margin of safety. Conversely, reducing positions when prices significantly exceed intrinsic values can lock in gains and reduce downside risk.
Risk Management Strategies:
Given the portfolio's exposure to leverage and regulatory risk (particularly in gaming), implementing stop-loss orders and position sizing discipline protects against catastrophic losses. Limiting individual position sizes to 5-10% of portfolio value prevents concentration risk, while maintaining adequate cash reserves provides flexibility for opportunistic additions during market dislocations.
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!
More Articles You Might Like
- Nelson Peltz - Trian Fund Management Portfolio Q3'2025: Top Holdings & Recent Changes
- Principles for Dealing with the Changing World Order by Ray Dalio
- The Ascent of Money by Niall Ferguson
- Principles for Navigating Big Debt Crises by Ray Dalio
- Influence: The Psychology of Persuasion by Robert B. Cialdini Ph.D.
FAQ Section
Q1: How were these stocks selected?
These stocks were selected using ValueSense's intrinsic value framework, which identifies companies trading below their fundamental worth while maintaining quality metrics indicating operational excellence. The selection process prioritizes companies with strong free cash flow generation, reasonable debt levels, and revenue growth trajectories suggesting sustainable competitive advantages. The portfolio spans multiple sectors to provide diversification benefits while maintaining exposure to high-growth opportunities.
Q2: What's the best stock from this list?
Determining the "best" stock depends on individual investment objectives, risk tolerance, and time horizon. AAPL offers exceptional cash generation and financial strength for conservative investors, while GCT and RSI provide higher growth potential for growth-oriented investors. Light & Wonder (LNW) balances growth and stability characteristics. ValueSense recommends analyzing each company's fundamentals relative to your specific investment criteria rather than relying on single-metric rankings.
Q3: Should I buy all these stocks or diversify?
This portfolio already provides meaningful diversification across technology, gaming, and sports betting sectors. However, individual investors should consider their overall portfolio composition, existing holdings, and risk tolerance before adding positions. Rather than purchasing all stocks simultaneously, consider a phased approach using dollar-cost averaging to reduce timing risk. Ensure no single position exceeds 5-10% of your total portfolio value to maintain appropriate diversification.
Q4: What are the biggest risks with these picks?
The primary risks vary by company but include regulatory uncertainty (particularly for gaming stocks), elevated leverage ratios (CHDN, DKNG, BRSL), capital efficiency challenges (FLUT, DKNG, GENI), and competitive intensity in online gaming markets. Technology stocks face disruption risks and market saturation concerns. Investors should carefully review each company's risk factors and conduct thorough due diligence before investing. Consider consulting with a financial advisor to assess alignment with your risk tolerance.
Q5: When is the best time to invest in these stocks?
Market timing is notoriously difficult, making a dollar-cost averaging approach preferable to lump-sum investing. Consider initiating positions when individual stocks trade at meaningful discounts to their intrinsic value estimates, providing margin of safety. During market downturns, quality companies often become more attractively valued, presenting opportunities for long-term investors. Avoid attempting to time market bottoms; instead, focus on building positions gradually at reasonable valuations over time.