10 Best Sports for February 2026
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Market Overview & Selection Criteria
In the current market environment, sports, leisure, and consumer discretionary sectors show mixed performance with opportunities in undervalued names based on intrinsic value metrics. ValueSense analysis highlights stocks with strong quality ratings, positive free cash flow generation, and revenue growth potential despite varying 1Y returns. Selection criteria prioritize companies with intrinsic value exceeding current implied pricing, quality ratings above 5.4, robust margins, and low-to-moderate debt levels, focusing on diversified exposure across fitness tech, motorsports, apparel, construction materials for sports infrastructure, entertainment holdings, golf equipment, marine recreation, biotech, coolers, and football clubs. These picks emphasize educational analysis of financial health via metrics like ROIC, FCF margins, and growth rates from ValueSense data.
Featured Stock Analysis
Stock #1: Garmin Ltd. (GRMN)
| Metric | Value |
|---|---|
| Market Cap | $38.8B |
| Quality Rating | 6.8 |
| Intrinsic Value | $202.7 |
| 1Y Return | -7.1% |
| Revenue | $6,943.1M |
| Free Cash Flow | $907.4M |
| Revenue Growth | 16.6% |
| FCF margin | 13.1% |
| Gross margin | 58.7% |
| ROIC | 30.4% |
| Total Debt to Equity | 1.8% |
Investment Thesis
Garmin Ltd. (GRMN) stands out with a quality rating of 6.8 and an intrinsic value of $202.7, supported by a $38.8B market cap. The company demonstrates solid financials including $6,943.1M in revenue, $907.4M free cash flow, 16.6% revenue growth, 13.1% FCF margin, 58.7% gross margin, and exceptional 30.4% ROIC, with minimal 1.8% total debt to equity. Despite a -7.1% 1Y return, these metrics suggest undervaluation in the fitness and navigation tech space, positioning GRMN for recovery through high-margin operations and capital efficiency.
This analysis reveals GRMN's strength in generating consistent cash flows with low leverage, making it a compelling case for value-oriented educational review in leisure tech.
Key Catalysts
- Strong 16.6% revenue growth driving scalability
- Industry-leading 30.4% ROIC indicating efficient capital use
- High 58.7% gross margin supporting profitability
- Low 1.8% debt-to-equity for financial stability
Risk Factors
- Recent -7.1% 1Y return signaling short-term market pressures
- Dependence on consumer discretionary spending in tech
Stock #2: Formula One Group (FWONK)
| Metric | Value |
|---|---|
| Market Cap | $21.7B |
| Quality Rating | 6.5 |
| Intrinsic Value | $55.1 |
| 1Y Return | -9.4% |
| Revenue | $4,040.0M |
| Free Cash Flow | $1,253.8M |
| Revenue Growth | 9.8% |
| FCF margin | 31.0% |
| Gross margin | 33.7% |
| ROIC | 3.0% |
| Total Debt to Equity | 23.7% |
Investment Thesis
Formula One Group (FWONK), with a $21.7B market cap and 6.5 quality rating, shows an intrinsic value of $55.1. Key metrics include $4,040.0M revenue, $1,253.8M free cash flow, 9.8% revenue growth, impressive 31.0% FCF margin, 33.7% gross margin, and 3.0% ROIC, alongside 23.7% total debt to equity. The -9.4% 1Y return contrasts with strong cash generation, highlighting potential undervaluation in motorsports entertainment.
FWONK's high FCF margin underscores operational leverage in global racing events, offering educational insights into sector resilience.
Key Catalysts
- 31.0% FCF margin for superior cash conversion
- Steady 9.8% revenue growth from event expansions
- Global brand appeal in premium sports entertainment
Risk Factors
- -9.4% 1Y return amid economic sensitivity
- Moderate 23.7% debt levels requiring monitoring
Stock #3: Amer Sports, Inc. (AS)
| Metric | Value |
|---|---|
| Market Cap | $20.4B |
| Quality Rating | 6.4 |
| Intrinsic Value | $8.4 |
| 1Y Return | 8.4% |
| Revenue | $6,100.6M |
| Free Cash Flow | $276.3M |
| Revenue Growth | 30.9% |
| FCF margin | 4.5% |
| Gross margin | 57.2% |
| ROIC | 6.1% |
| Total Debt to Equity | 33.0% |
Investment Thesis
Amer Sports, Inc. (AS) features a $20.4B market cap, 6.4 quality rating, and $8.4 intrinsic value. Financials boast $6,100.6M revenue, $276.3M free cash flow, 30.9% revenue growth, 4.5% FCF margin, 57.2% gross margin, 6.1% ROIC, and 33.0% total debt to equity, with a positive 8.4% 1Y return. This profile indicates growth momentum in sports apparel and equipment.
The high revenue growth and gross margins position AS as a dynamic player in active lifestyle products for analysis.
Key Catalysts
- Robust 30.9% revenue growth in sports gear
- 57.2% gross margin reflecting pricing power
- Positive 8.4% 1Y return showing market favor
Risk Factors
- Lower 4.5% FCF margin limiting cash flexibility
- 33.0% debt-to-equity in competitive apparel space
Stock #4: CEMEX, S.A.B. de C.V. (CX)
| Metric | Value |
|---|---|
| Market Cap | $18.6B |
| Quality Rating | 5.8 |
| Intrinsic Value | $239.2 |
| 1Y Return | 105.9% |
| Revenue | $15.8B |
| Free Cash Flow | $1,002.1M |
| Revenue Growth | (6.5%) |
| FCF margin | 6.3% |
| Gross margin | 31.7% |
| ROIC | 7.9% |
| Total Debt to Equity | 16.5% |
Investment Thesis
CEMEX, S.A.B. de C.V. (CX) has an $18.6B market cap, 5.8 quality rating, and $239.2 intrinsic value. Metrics include $15.8B revenue, $1,002.1M free cash flow, 6.5% revenue growth, 6.3% FCF margin, 31.7% gross margin, 7.9% ROIC, and 16.5% total debt to equity, bolstered by a standout 105.9% 1Y return. This suggests significant undervaluation in construction materials tied to sports infrastructure.
CX's strong 1Y performance and ROIC provide educational value despite revenue dip.
Key Catalysts
- Exceptional 105.9% 1Y return momentum
- Solid 7.9% ROIC in materials sector
- $1,002.1M FCF supporting operations
Risk Factors
- 6.5% revenue growth contraction
- Cyclical exposure to construction markets
Stock #5: TKO Group Holdings, Inc. (TKO)
| Metric | Value |
|---|---|
| Market Cap | $16.3B |
| Quality Rating | 6.8 |
| Intrinsic Value | $175.1 |
| 1Y Return | 28.6% |
| Revenue | $4,339.4M |
| Free Cash Flow | $1,012.3M |
| Revenue Growth | 56.3% |
| FCF margin | 23.3% |
| Gross margin | 58.2% |
| ROIC | 6.8% |
| Total Debt to Equity | 45.6% |
Investment Thesis
TKO Group Holdings, Inc. (TKO) boasts a $16.3B market cap, 6.8 quality rating, and $175.1 intrinsic value. It reports $4,339.4M revenue, $1,012.3M free cash flow, 56.3% revenue growth, 23.3% FCF margin, 58.2% gross margin, 6.8% ROIC, and 45.6% total debt to equity, with 28.6% 1Y return. High growth underscores combat sports and entertainment potential.
TKO's metrics highlight synergy in media and events for value analysis.
Key Catalysts
- Explosive 56.3% revenue growth
- 23.3% FCF margin efficiency
- 28.6% 1Y return strength
Risk Factors
- Elevated 45.6% debt-to-equity
- Integration risks in holdings
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Stock #6: Acushnet Holdings Corp. (GOLF)
| Metric | Value |
|---|---|
| Market Cap | $5,737.1M |
| Quality Rating | 6.6 |
| Intrinsic Value | $5,146.8 |
| 1Y Return | 46.6% |
| Revenue | $2,082.0B |
| Free Cash Flow | $143.3B |
| Revenue Growth | 85,757.8% |
| FCF margin | 6.9% |
| Gross margin | 48.5% |
| ROIC | 0.0% |
| Total Debt to Equity | 105.2% |
Investment Thesis
Acushnet Holdings Corp. (GOLF) has a $5,737.1M market cap, 6.6 quality rating, and $5,146.8 intrinsic value. Data shows $2,082.0B revenue, $143.3B free cash flow, 85,757.8% revenue growth, 6.9% FCF margin, 48.5% gross margin, 0.0% ROIC, and 105.2% total debt to equity, plus 46.6% 1Y return. Extreme growth metrics point to golf equipment dominance.
This offers insights into high-scale operations in leisure sports.
Key Catalysts
- Massive 85,757.8% revenue growth
- 46.6% 1Y return performance
- Substantial $143.3B FCF scale
Risk Factors
- High 105.2% debt-to-equity burden
- 0.0% ROIC neutrality
Stock #7: Brunswick Corporation (BC)
| Metric | Value |
|---|---|
| Market Cap | $5,296.5M |
| Quality Rating | 5.8 |
| Intrinsic Value | $86.8 |
| 1Y Return | 17.0% |
| Revenue | $5,362.8M |
| Free Cash Flow | $438.5M |
| Revenue Growth | 2.4% |
| FCF margin | 8.2% |
| Gross margin | 24.8% |
| ROIC | (1.3%) |
| Total Debt to Equity | 129.3% |
Investment Thesis
Brunswick Corporation (BC), with $5,296.5M market cap and 5.8 quality rating, lists $86.8 intrinsic value. Financials: $5,362.8M revenue, $438.5M free cash flow, 2.4% revenue growth, 8.2% FCF margin, 24.8% gross margin, 1.3% ROIC, 129.3% total debt to equity, and 17.0% 1Y return. Analysis focuses on marine recreation resilience.
BC provides balanced view of leisure manufacturing.
Key Catalysts
- Steady 17.0% 1Y return
- 8.2% FCF margin consistency
- Core revenue base in boating
Risk Factors
- Negative 1.3% ROIC
- High 129.3% debt levels
Stock #8: Denali Therapeutics Inc. (DNLI)
| Metric | Value |
|---|---|
| Market Cap | $3,749.3M |
| Quality Rating | 5.6 |
| Intrinsic Value | $6.0 |
| 1Y Return | -7.7% |
| Revenue | $0.0 |
| Free Cash Flow | ($410.8M) |
| Revenue Growth | (100.0%) |
| FCF margin | N/A |
| Gross margin | N/A |
| ROIC | (464.9%) |
| Total Debt to Equity | 4.8% |
Investment Thesis
Denali Therapeutics Inc. (DNLI) features $3,749.3M market cap, 5.6 quality rating, $6.0 intrinsic value. Metrics: $0.0 revenue, $410.8M free cash flow, 100.0% revenue growth, N/A FCF margin, N/A gross margin, 464.9% ROIC, 4.8% total debt to equity, -7.7% 1Y return. Biotech focus offers high-risk educational analysis.
DNLI illustrates pre-revenue biotech dynamics.
Key Catalysts
- Low 4.8% debt for pipeline funding
- Potential in neuro therapeutics
Risk Factors
- Negative $410.8M FCF burn
- Extreme 464.9% negative ROIC
- No revenue generation
Stock #9: YETI Holdings, Inc. (YETI)
| Metric | Value |
|---|---|
| Market Cap | $3,748.3M |
| Quality Rating | 6.4 |
| Intrinsic Value | $42.4 |
| 1Y Return | 19.1% |
| Revenue | $1,831.3M |
| Free Cash Flow | $231.2M |
| Revenue Growth | 1.6% |
| FCF margin | 12.6% |
| Gross margin | 57.8% |
| ROIC | 22.7% |
| Total Debt to Equity | 21.8% |
Investment Thesis
YETI Holdings, Inc. (YETI) has $3,748.3M market cap, 6.4 quality rating, $42.4 intrinsic value. Includes $1,831.3M revenue, $231.2M free cash flow, 1.6% revenue growth, 12.6% FCF margin, 57.8% gross margin, 22.7% ROIC, 21.8% total debt to equity, 19.1% 1Y return. Strong margins define coolers and outdoor gear.
YETI exemplifies premium consumer durability.
Key Catalysts
- High 22.7% ROIC efficiency
- 57.8% gross margin strength
- 19.1% 1Y return consistency
Risk Factors
- Modest 1.6% revenue growth
- 21.8% debt exposure
Stock #10: Manchester United plc (MANU)
| Metric | Value |
|---|---|
| Market Cap | $3,052.0M |
| Quality Rating | 5.4 |
| Intrinsic Value | $11.7 |
| 1Y Return | 9.5% |
| Revenue | £663.8M |
| Free Cash Flow | (£192.0M) |
| Revenue Growth | 2.5% |
| FCF margin | (28.9%) |
| Gross margin | 91.6% |
| ROIC | (4.1%) |
| Total Debt to Equity | (218.1%) |
Investment Thesis
Manchester United plc (MANU), $3,052.0M market cap, 5.4 quality rating, $11.7 intrinsic value. Reports £663.8M revenue, £192.0M free cash flow, 2.5% revenue growth, 28.9% FCF margin, 91.6% gross margin, 4.1% ROIC, 218.1% total debt to equity, 9.5% 1Y return. High gross margins in football amid challenges.
MANU analysis covers global sports branding.
Key Catalysts
- Exceptional 91.6% gross margin
- 2.5% revenue growth stability
- Iconic brand value
Risk Factors
- Negative £192.0M FCF
- High negative 218.1% debt-to-equity
- 4.1% ROIC drag
Portfolio Diversification Insights
This 10 stock watchlist spans sports tech (GRMN), motorsports (FWONK), apparel (AS), infrastructure (CX), entertainment (TKO, MANU), golf (GOLF), marine (BC), biotech (DNLI), outdoor gear (YETI). Sector allocation: 40% direct sports/leisure, 30% entertainment, 20% consumer goods, 10% biotech/materials. High-quality names like GRMN and TKO balance growth outliers like GOLF with stable margins (YETI, AS). Low-debt leaders (GRMN, DNLI) offset leveraged plays (BC, GOLF), reducing correlation risks while targeting undervalued stocks across market caps from $38.8B to $3B.
Market Timing & Entry Strategies
Consider positions during sector dips, such as post-earnings volatility or economic slowdowns affecting discretionary spending. Monitor for intrinsic value gaps widening on pullbacks, using quality ratings >6 for priority entry. Dollar-cost average into high-growth like TKO or GOLF on 5-10% corrections, while staging into stable GRMN/YETI. Track revenue growth and FCF trends quarterly for optimal timing in this stock picks collection.
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FAQ Section
How were these stocks selected?
Stocks were chosen using ValueSense criteria emphasizing intrinsic value upside, quality ratings 5.4+, strong margins, and sector diversity in sports/leisure for comprehensive stock watchlist coverage.
What's the best stock from this list?
GRMN leads with top 6.8 quality rating, 30.4% ROIC, and low debt, though TKO and GOLF show highest growth; selection depends on risk tolerance in investment opportunities.
Should I buy all these stocks or diversify?
Diversify across the portfolio for balanced exposure to growth (AS, TKO) and stability (GRMN, YETI), avoiding concentration in high-debt names like BC or GOLF.
What are the biggest risks with these picks?
Key risks include debt burdens (GOLF 105.2%, BC 129.3%), negative FCF (DNLI, MANU), and growth volatility (CX -6.5% revenue), alongside sector cyclicality.
When is the best time to invest in these stocks?
Optimal during market corrections amplifying intrinsic value discounts, or on positive catalyst confirmations like revenue beats, for long-term undervalued stocks positioning.