10 Best Sportstech 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 sportstech sector blends sports, gaming, streaming, and fitness technology, offering value opportunities amid evolving consumer habits and digital entertainment growth. Value Sense's curated watchlist highlights 10 undervalued sportstech stocks selected via proprietary machine learning algorithms that scan for high intrinsic value potential, quality ratings above 4.5, and strong fundamentals like ROIC, FCF margins, and revenue metrics. These picks emphasize companies trading below their calculated intrinsic values, ideal for long-term analysis in a market favoring digital sports engagement. Selection prioritizes diversification across subsectors like betting data (SRAD), biotech (DNLI), golf equipment (MODG), fitness hardware (PTON), live streaming (DOYU, HUYA), nutrition (HLF), sports TV (FUBO), health tech (HIT), and mobile gaming (SKLZ).
Featured Stock Analysis
Stock #1: Sportradar Group AG (SRAD)
| Metric | Value |
|---|---|
| Market Cap | $5,833.6M |
| Quality Rating | 7.1 |
| Intrinsic Value | $32.2 |
| 1Y Return | -15.1% |
| Revenue | €1,228.1M |
| Free Cash Flow | €282.0M |
| Revenue Growth | 16.7% |
| FCF margin | 23.0% |
| Gross margin | 41.8% |
| ROIC | 19.0% |
| Total Debt to Equity | 6.4% |
Investment Thesis
Sportradar Group AG (SRAD) stands out in the sportstech space with a Quality rating of 7.1 and an intrinsic value of $32.2, suggesting significant undervaluation for value-focused analysis. The company reports €1,228.1M in revenue with 16.7% growth, supported by €282.0M free cash flow and a robust 23.0% FCF margin. Gross margins at 41.8% and ROIC of 19.0% highlight efficient operations in sports data and betting services, positioning SRAD as a leader in real-time analytics for global sports betting markets. Low total debt to equity of 6.4% adds financial stability despite a -15.1% 1Y return, making it a core holding for sportstech watchlists targeting scalable data platforms.
Key Catalysts
- Strong revenue growth of 16.7% driven by expanding sports betting partnerships
- High FCF margin 23.0% enabling reinvestment in AI-driven data tools
- Superior ROIC 19.0% indicating capital efficiency in competitive markets
- Low debt levels 6.4% supporting long-term expansion
Risk Factors
- Recent -15.1% 1Y return amid regulatory pressures in betting sector
- Currency fluctuations from euro-denominated revenue
- Dependence on global sports events for data demand
Stock #2: 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), a biotech player in sportstech-related neuroscience, features a Quality rating of 5.6 and intrinsic value of $6.0, offering value analysis potential despite $0.0 revenue and 100.0% growth contraction. Market cap stands at $3,749.3M with negative free cash flow of $410.8M and ROIC of 464.9%, typical for pre-revenue biotech developing therapies that could intersect sports performance and health tech. Minimal total debt to equity 4.8% provides runway, while -7.7% 1Y return reflects sector volatility, appealing for investors analyzing high-upside clinical pipelines in health-sport intersections.
Key Catalysts
- Low debt 4.8% preserving cash for R&D breakthroughs
- Biotech positioning for sports neurology advancements
- Potential revenue inflection from pipeline approvals
Risk Factors
- Zero revenue and negative ROIC -464.9% signal development risks
- High cash burn with $410.8M FCF
- Revenue growth contraction 100.0% heightens execution uncertainty
Stock #3: Topgolf Callaway Brands Corp. (MODG)
| Metric | Value |
|---|---|
| Market Cap | $2,828.4M |
| Quality Rating | 5.8 |
| Intrinsic Value | $36.9 |
| 1Y Return | 90.8% |
| Revenue | $4,061.2M |
| Free Cash Flow | ($257.4M) |
| Revenue Growth | (3.6%) |
| FCF margin | (6.3%) |
| Gross margin | 65.7% |
| ROIC | (22.9%) |
| Total Debt to Equity | 78.5% |
Investment Thesis
Topgolf Callaway Brands Corp. (MODG) delivers golf sportstech innovation with a Quality rating of 5.8 and intrinsic value of $36.9 against a $2,828.4M market cap. Revenue of $4,061.2M shows slight 3.6% decline, paired with $257.4M FCF and 6.3% margin, but impressive 65.7% gross margins and 90.8% 1Y return underscore brand strength in experiential golf tech. Elevated total debt to equity 78.5% and negative ROIC -22.9% warrant caution, yet high margins position MODG for recovery in premium sports equipment.
Key Catalysts
- Exceptional 90.8% 1Y return from Topgolf integration success
- Strong gross margins 65.7% supporting premium pricing
- Entertainment-driven growth in golf tech venues
Risk Factors
- Negative FCF $257.4M and ROIC -22.9%
- High debt 78.5% amid revenue contraction 3.6%
- Consumer spending sensitivity in leisure sector
Stock #4: Peloton Interactive, Inc. (PTON)
| Metric | Value |
|---|---|
| Market Cap | $2,296.6M |
| Quality Rating | 5.6 |
| Intrinsic Value | $12.0 |
| 1Y Return | -30.7% |
| Revenue | $2,455.6M |
| Free Cash Flow | $380.4M |
| Revenue Growth | (8.7%) |
| FCF margin | 15.5% |
| Gross margin | 50.8% |
| ROIC | (2.1%) |
| Total Debt to Equity | (292.9%) |
Investment Thesis
Peloton Interactive, Inc. (PTON) revolutionizes connected fitness in sportstech with a Quality rating of 5.6, intrinsic value of $12.0, and $2,296.6M market cap. Despite 8.7% revenue growth on $2,455.6M sales, positive $380.4M FCF and 15.5% margin signal turnaround, complemented by 50.8% gross margins. Negative ROIC -2.1% and total debt to equity -292.9% reflect past overexpansion, but -30.7% 1Y return offers entry for fitness platform recovery analysis.
Key Catalysts
- Positive FCF $380.4M and 15.5% margin improvement
- Subscription model driving recurring revenue stability
- Hardware-software ecosystem expansion
Risk Factors
- Revenue decline 8.7% and negative ROIC -2.1%
- High negative leverage (-292.9% debt/equity)
- Competitive pressures in home fitness market
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 #5: DouYu International Holdings Limited (DOYU)
| Metric | Value |
|---|---|
| Market Cap | $1,952.6M |
| Quality Rating | 4.7 |
| Intrinsic Value | $7.2 |
| 1Y Return | 2.4% |
| Revenue | CN¥4,036.1M |
| Free Cash Flow | CN¥0.0 |
| Revenue Growth | (8.9%) |
| FCF margin | 0.0% |
| Gross margin | 10.9% |
| ROIC | 59.7% |
| Total Debt to Equity | 0.5% |
Investment Thesis
DouYu International Holdings Limited (DOYU), a live streaming leader, holds a Quality rating of 4.7 with intrinsic value $7.2 and $1,952.6M market cap. CN¥4,036.1M revenue faces 8.9% growth drop, with CN¥0.0 FCF and 0.0% margin, but standout ROIC of 59.7% and low 0.5% debt to equity highlight asset efficiency. Modest 2.4% 1Y return and 10.9% gross margins suit analysis of China gaming streams in sportstech.
Key Catalysts
- Exceptional ROIC 59.7% from efficient capital use
- Minimal debt 0.5% bolstering balance sheet
- Live streaming growth in esports
Risk Factors
- Revenue contraction 8.9% and zero FCF
- Low gross margins 10.9% in competitive China market
- Regulatory risks in gaming sector
Stock #6: Herbalife Nutrition Ltd. (HLF)
| Metric | Value |
|---|---|
| Market Cap | $1,741.1M |
| Quality Rating | 5.6 |
| Intrinsic Value | $86.8 |
| 1Y Return | 202.5% |
| Revenue | $4,961.9M |
| Free Cash Flow | $217.0M |
| Revenue Growth | (0.8%) |
| FCF margin | 4.4% |
| Gross margin | 78.0% |
| ROIC | 33.7% |
| Total Debt to Equity | (29.3%) |
Investment Thesis
Herbalife Nutrition Ltd. (HLF) supports sports nutrition with Quality rating 5.6, intrinsic value $86.8, and $1,741.1M market cap. $4,961.9M revenue with minor 0.8% decline yields $217.0M FCF and 4.4% margin, backed by 78.0% gross margins and ROIC 33.7%. Stellar 202.5% 1Y return offsets negative debt to equity -29.3%, positioning HLF for direct-sales model analysis in athlete wellness.
Key Catalysts
- Massive 202.5% 1Y return from nutrition demand
- High gross margins 78.0% and ROIC 33.7%
- Positive FCF $217.0M for growth
Risk Factors
- Slight revenue drop 0.8%
- Negative leverage (-29.3% debt/equity)
- Distribution model controversies
Stock #7: HUYA Inc. (HUYA)
| Metric | Value |
|---|---|
| Market Cap | $973.4M |
| Quality Rating | 4.5 |
| Intrinsic Value | $5.7 |
| 1Y Return | 13.7% |
| Revenue | CN¥6,259.8M |
| Free Cash Flow | CN¥0.0 |
| Revenue Growth | 1.6% |
| FCF margin | 0.0% |
| Gross margin | 12.7% |
| ROIC | (11.3%) |
| Total Debt to Equity | 0.5% |
Investment Thesis
HUYA Inc. (HUYA) excels in game streaming with Quality rating 4.5, intrinsic value $5.7, and $973.4M market cap. CN¥6,259.8M revenue grows 1.6%, though FCF is CN¥0.0 with 0.0% margin; 12.7% gross margins and low 0.5% debt support 13.7% 1Y return despite negative ROIC -11.3%, ideal for esports sportstech exposure.
Key Catalysts
- Revenue growth 1.6% in live game broadcasts
- Low debt 0.5% for flexibility
- Positive 13.7% 1Y performance
Risk Factors
- Zero FCF and negative ROIC -11.3%
- Thin gross margins 12.7%
- China market regulatory headwinds
Stock #8: fuboTV Inc. (FUBO)
| Metric | Value |
|---|---|
| Market Cap | $782.7M |
| Quality Rating | 6.3 |
| Intrinsic Value | $6.0 |
| 1Y Return | -45.9% |
| Revenue | $1,616.7M |
| Free Cash Flow | $134.8M |
| Revenue Growth | 1.7% |
| FCF margin | 8.3% |
| Gross margin | 17.2% |
| ROIC | (11.1%) |
| Total Debt to Equity | 103.4% |
Investment Thesis
fuboTV Inc. (FUBO) streams sports content with Quality rating 6.3, intrinsic value $6.0, and $782.7M market cap. $1,616.7M revenue grows 1.7%, with $134.8M FCF and 8.3% margin; 17.2% gross margins offset negative ROIC -11.1% and high 103.4% debt, despite -45.9% 1Y return, for cord-cutting sports TV analysis.
Key Catalysts
- Revenue uptick 1.7% and positive FCF $134.8M
- Sports streaming subscriber growth
- Improving 8.3% FCF margin
Risk Factors
- High debt 103.4% and negative ROIC -11.1%
- -45.9% 1Y return volatility
- Competition in streaming wars
Stock #9: Health In Tech, Inc. (HIT)
| Metric | Value |
|---|---|
| Market Cap | $64.9M |
| Quality Rating | 6.3 |
| Intrinsic Value | $405.5K |
| 1Y Return | -81.2% |
| Revenue | $8,490.1B |
| Free Cash Flow | $2,682.6B |
| Revenue Growth | 42,873,585.9% |
| FCF margin | 31.6% |
| Gross margin | 60.6% |
| ROIC | 14.1% |
| Total Debt to Equity | 0.9% |
Investment Thesis
Health In Tech, Inc. (HIT) advances health sportstech with Quality rating 6.3, intrinsic value $405.5K, and tiny $64.9M market cap. Massive $8,490.1B revenue and $2,682.6B FCF yield 31.6% margin, 42,873,585.9% growth, 60.6% gross margins, and 14.1% ROIC; low 0.9% debt counters -81.2% 1Y return for high-growth analysis.
Key Catalysts
- Explosive 42,873,585.9% revenue growth
- Strong FCF $2,682.6B and 31.6% margin
- Positive ROIC 14.1% and low debt 0.9%
Risk Factors
- Sharp -81.2% 1Y return
- Micro-cap volatility at $64.9M
- Extraordinary scale raises sustainability questions
Stock #10: Skillz Inc. (SKLZ)
| Metric | Value |
|---|---|
| Market Cap | $55.4M |
| Quality Rating | 5.4 |
| Intrinsic Value | $32.5 |
| 1Y Return | -43.9% |
| Revenue | $97.5M |
| Free Cash Flow | ($80.3M) |
| Revenue Growth | (6.4%) |
| FCF margin | (82.3%) |
| Gross margin | 86.9% |
| ROIC | (267.9%) |
| Total Debt to Equity | 0.1% |
Investment Thesis
Skillz Inc. (SKLZ) powers mobile esports with Quality rating 5.4, intrinsic value $32.5, and $55.4M market cap. $97.5M revenue declines 6.4%, with $80.3M FCF and 82.3% margin; 86.9% gross margins shine amid negative ROIC -267.9% and minimal 0.1% debt, despite -43.9% 1Y return, for gaming platform turnaround study.
Key Catalysts
- High gross margins 86.9% in mobile competition
- Near-zero debt 0.1% aiding recovery
- Intrinsic value upside to $32.5
Risk Factors
- Revenue drop 6.4% and negative FCF $80.3M
- Poor ROIC -267.9%
- Small cap risks in competitive gaming
Portfolio Diversification Insights
These 10 sportstech stocks create balanced exposure: data/betting (SRAD), biotech (DNLI), equipment (MODG), fitness (PTON), streaming (DOYU, HUYA, FUBO), nutrition (HLF), health tech (HIT), and gaming (SKLZ). Allocation favors mid-caps (SRAD, DNLI) for stability, micros (HIT, SKLZ) for growth. SRAD's high quality complements DNLI's upside, while HLF's returns offset FUBO's debt. Sector spread reduces correlation risks, with strong ROIC names (DOYU, HLF) anchoring vs. high-growth outliers like HIT.
Market Timing & Entry Strategies
Consider positions during sportstech dips, like post-earnings or sector rotations toward digital entertainment. Ladder entries on 10-20% pullbacks from intrinsic values (e.g., SRAD below $32.2), using Value Sense screeners for ROIC >10% confirmation. Monitor revenue growth inflection (e.g., PTON, FUBO) and pair with macro sports events for catalysts. Scale in over 3-6 months for volatility management.
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
How were these stocks selected?
These 10 best sportstech stock picks were curated using Value Sense's AI-driven screener focusing on intrinsic value upside, quality ratings, ROIC, and FCF metrics from the platform's validated data.
What's the best stock from this list?
SRAD leads with the highest Quality rating 7.1, strong 19.0% ROIC, and 23.0% FCF margin, making it a top sportstech analysis standout for balanced growth.
Should I buy all these stocks or diversify?
Diversify across the list's subsectors (streaming, fitness, gaming) to mitigate risks like China regulations (DOYU, HUYA) or debt (FUBO, MODG), aligning with investment opportunities in sportstech.
What are the biggest risks with these picks?
Key concerns include revenue declines (PTON, DOYU), negative ROIC (DNLI, SKLZ), high debt (MODG, FUBO), and micro-cap volatility (HIT, SKLZ) in the undervalued stocks space.
When is the best time to invest in these stocks?
Target entries on pullbacks to intrinsic values or positive earnings sentiment, using Value Sense tools for timing in stock picks amid sportstech recovery phases.