10 Best Stocks Under 1 for February 2026
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Market Overview & Selection Criteria
In the current market environment, value investors seek stocks trading below their intrinsic value, particularly in technology, healthcare, and emerging sectors like crypto mining and lidar tech. ValueSense's methodology identifies these opportunities by analyzing key metrics such as Quality rating, intrinsic value, ROIC, revenue growth, and margins using machine learning-driven tools. Stocks were selected from curated watchlists focusing on small-cap names under $4B market cap with potential undervaluation signals, prioritizing those with positive ROIC or high growth despite negative FCF. This educational analysis highlights 10 picks for diversified stock watchlist consideration, emphasizing fundamental discrepancies for long-term portfolio screening.
Featured Stock Analysis
Stock #1: CleanSpark, Inc. (CLSKW)
| Metric | Value |
|---|---|
| Market Cap | $3,423.6M |
| Quality Rating | 6.8 |
| Intrinsic Value | $0.7 |
| 1Y Return | -46.5% |
| Revenue | $766.3M |
| Free Cash Flow | ($1,023.9M) |
| Revenue Growth | 102.2% |
| FCF margin | (133.6%) |
| Gross margin | 43.6% |
| ROIC | 15.1% |
| Total Debt to Equity | 37.8% |
Investment Thesis
CleanSpark, Inc. (CLSKW) stands out with a Quality rating of 6.8 and a market cap of $3,423.6M, positioning it as a higher-quality pick in this collection. Despite a 1Y Return of -46.5%, the company demonstrates robust revenue growth of 102.2% to $766.3M, supported by a solid gross margin of 43.6% and ROIC of 15.1%. However, free cash flow remains negative at $1,023.9M with an FCF margin of 133.6%, indicating heavy capital investments likely in bitcoin mining infrastructure. The intrinsic value of $0.7 suggests potential undervaluation if growth sustains, making it a watch for value investors eyeing crypto-related plays with improving efficiency.
This analysis frames CLSKW as an educational case of high-growth scalability in commodities-tech intersection, where revenue acceleration offsets cash burn. Total Debt to Equity at 37.8% is manageable, offering a balanced risk profile compared to peers.
Key Catalysts
- Exceptional revenue growth of 102.2%, signaling strong operational expansion
- Positive ROIC at 15.1%, indicating efficient capital use
- Healthy gross margin of 43.6%, supporting profitability path
Risk Factors
- Negative free cash flow of $1,023.9M and FCF margin 133.6%, due to capex intensity
- 1Y Return decline of -46.5%, vulnerable to crypto market volatility
- Debt levels at 37.8% Total Debt to Equity, amplifying cyclical risks
Stock #2: Lotus Technology Inc. Warrants (LOTWW)
| Metric | Value |
|---|---|
| Market Cap | $822.6M |
| Quality Rating | 5.1 |
| Intrinsic Value | $56.8 |
| 1Y Return | -66.9% |
| Revenue | $626.6M |
| Free Cash Flow | ($905.9M) |
| Revenue Growth | (38.3%) |
| FCF margin | (144.6%) |
| Gross margin | (0.1%) |
| ROIC | (231.4%) |
| Total Debt to Equity | (134.5%) |
Investment Thesis
Lotus Technology Inc. Warrants (LOTWW) carries a Quality rating of 5.1 and $822.6M market cap, with an intriguing intrinsic value of $56.8 that implies significant upside potential relative to current trading. Revenue stands at $626.6M but contracted by 38.3%, paired with deeply negative free cash flow of $905.9M and FCF margin of 144.6%. Gross margin is nearly breakeven at 0.1%, while ROIC of 231.4% and negative Total Debt to Equity of 134.5% highlight balance sheet strains in the EV warrants space. The 1Y Return of -66.9% reflects sector headwinds, yet the high intrinsic value positions it for recovery analysis in electric vehicle tech.
This stock exemplifies undervalued stocks in high-volatility sectors, where warrant structures amplify growth potential amid restructuring.
Key Catalysts
- High intrinsic value estimate of $56.8, suggesting deep undervaluation
- Substantial revenue base of $626.6M in EV technology
Risk Factors
- Revenue decline of 38.3% and poor ROIC -231.4%
- Severe FCF burn at $905.9M with 144.6% margin
- Negative Total Debt to Equity -134.5%, signaling financial distress
Stock #3: Aeva Technologies, Inc. (AEVAW)
| Metric | Value |
|---|---|
| Market Cap | $736.2M |
| Quality Rating | 5.3 |
| Intrinsic Value | $0.1 |
| 1Y Return | 77.6% |
| Revenue | $15.2M |
| Free Cash Flow | ($119.1M) |
| Revenue Growth | 89.9% |
| FCF margin | (785.7%) |
| Gross margin | (18.5%) |
| ROIC | (654.7%) |
| Total Debt to Equity | 32.2% |
Investment Thesis
Aeva Technologies, Inc. (AEVAW), with a $736.2M market cap and Quality rating of 5.3, shows the strongest 1Y Return at 77.6% among most peers, driven by 89.9% revenue growth to $15.2M. However, challenges persist with FCF of $119.1M, FCF margin 785.7%, negative gross margin -18.5%, and ROIC -654.7%. Intrinsic value at $0.1 flags caution, while Total Debt to Equity of 32.2% remains moderate. This lidar tech play suits technology stock picks for investors analyzing early-stage growth versus cash consumption.
The thesis underscores AEVAW's momentum in autonomous vehicle sensors, balancing high growth against pre-profitability norms.
Key Catalysts
- Impressive 1Y Return of 77.6% and revenue growth 89.9%
- Positioned in high-demand lidar for AV sector
Risk Factors
- Extreme FCF margin -785.7% and negative gross margin -18.5%
- Low intrinsic value $0.1 amid ROIC -654.7%
- Small revenue base $15.2M limits scale
Stock #4: agilon health, inc. (AGL)
| Metric | Value |
|---|---|
| Market Cap | $358.6M |
| Quality Rating | 4.6 |
| Intrinsic Value | $23.6 |
| 1Y Return | -76.8% |
| Revenue | $5,885.6M |
| Free Cash Flow | ($91.5M) |
| Revenue Growth | 5.2% |
| FCF margin | (1.6%) |
| Gross margin | (0.7%) |
| ROIC | (73.6%) |
| Total Debt to Equity | 11.4% |
Investment Thesis
agilon health, inc. (AGL) features a $358.6M market cap and Quality rating of 4.6, with massive revenue of $5,885.6M but modest 5.2% growth. Intrinsic value of $23.6 suggests undervaluation, contrasted by 1Y Return -76.8%, FCF $91.5M, and negative margins including gross -0.7% and FCF -1.6%. ROIC at 73.6% and low Total Debt to Equity 11.4% indicate a healthcare management firm in turnaround mode. This analysis highlights healthcare stock picks with scale potential.
AGL represents educational content on value in mature revenue streams amid operational inefficiencies.
Key Catalysts
- Large revenue scale $5,885.6M with intrinsic value $23.6
- Low debt at 11.4% Total Debt to Equity
Risk Factors
- Sharp 1Y Return drop -76.8% and ROIC -73.6%
- Negative gross margin -0.7% and FCF pressures
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Stock #5: Canaan Inc. (CAN)
| Metric | Value |
|---|---|
| Market Cap | $346.1M |
| Quality Rating | 4.6 |
| Intrinsic Value | $153.4 |
| 1Y Return | -69.5% |
| Revenue | $422.4M |
| Free Cash Flow | ($44.6M) |
| Revenue Growth | 48.2% |
| FCF margin | (10.6%) |
| Gross margin | 4.8% |
| ROIC | (79.1%) |
| Total Debt to Equity | 12.5% |
Investment Thesis
Canaan Inc. (CAN) has a $346.1M market cap, Quality rating 4.6, and standout intrinsic value of $153.4, pointing to extreme undervaluation. Revenue growth of 48.2% to $422.4M is offset by FCF $44.6M, low gross margin 4.8%, and ROIC 79.1%. 1Y Return -69.5% reflects mining hardware cyclicality, with Total Debt to Equity 12.5% low. Ideal for commodities stock analysis in bitcoin equipment.
The thesis focuses on CAN's growth trajectory versus thin margins.
Key Catalysts
- Exceptional intrinsic value $153.4 and 48.2% revenue growth
- Manageable debt at 12.5%
Risk Factors
- Negative ROIC -79.1% and 1Y Return -69.5%
- Slim gross margin 4.8%
Stock #6: DeFi Technologies Inc. (DEFT)
| Metric | Value |
|---|---|
| Market Cap | $264.9M |
| Quality Rating | 4.8 |
| Intrinsic Value | $2.7 |
| 1Y Return | -77.2% |
| Revenue | $87.8M |
| Free Cash Flow | ($194.1M) |
| Revenue Growth | (14.8%) |
| FCF margin | (221.0%) |
| Gross margin | 85.1% |
| ROIC | 9.4% |
| Total Debt to Equity | 13.6% |
Investment Thesis
DeFi Technologies Inc. (DEFT), at $264.9M market cap and Quality rating 4.8, shows positive ROIC 9.4% and high gross margin 85.1%, despite revenue decline 14.8% to $87.8M and FCF $194.1M. Intrinsic value $2.7 and 1Y Return -77.2% suggest DeFi sector volatility, with Total Debt to Equity 13.6%. Positions as a crypto stock watchlist candidate.
Key Catalysts
- Strong gross margin 85.1% and ROIC 9.4%
- Niche in DeFi technologies
Risk Factors
- Revenue drop 14.8% and heavy FCF burn
- Poor 1Y Return -77.2%
Stock #7: MicroVision, Inc. (MVIS)
| Metric | Value |
|---|---|
| Market Cap | $243.4M |
| Quality Rating | 5.2 |
| Intrinsic Value | $1.0 |
| 1Y Return | -48.2% |
| Revenue | $2,635.0K |
| Free Cash Flow | ($58.9M) |
| Revenue Growth | (67.7%) |
| FCF margin | (2,235.6%) |
| Gross margin | (140.6%) |
| ROIC | (154.3%) |
| Total Debt to Equity | 51.4% |
Investment Thesis
MicroVision, Inc. (MVIS) with $243.4M market cap and Quality rating 5.2 faces steep challenges: revenue $2,635.0K down 67.7%, FCF $58.9M, gross margin 140.6%, ROIC 154.3%. Intrinsic value $1.0 and 1Y Return -48.2%, debt 51.4%. Lidar tech for investment opportunities analysis.
Key Catalysts
- Moderate Quality rating 5.2 in lidar space
Risk Factors
- Extreme FCF margin -2,235.6% and revenue contraction
- High debt 51.4% Total Debt to Equity
Stock #8: Innoviz Technologies Ltd. (INVZ)
| Metric | Value |
|---|---|
| Market Cap | $199.4M |
| Quality Rating | 4.9 |
| Intrinsic Value | $0.8 |
| 1Y Return | -35.9% |
| Revenue | $48.4M |
| Free Cash Flow | ($61.0M) |
| Revenue Growth | 46.1% |
| FCF margin | (126.0%) |
| Gross margin | 23.5% |
| ROIC | (112.3%) |
| Total Debt to Equity | 39.0% |
Investment Thesis
Innoviz Technologies Ltd. (INVZ), $199.4M cap, Quality rating 4.9, revenue growth 46.1% to $48.4M but FCF $61.0M, gross 23.5%, ROIC 112.3%. Intrinsic $0.8, 1Y -35.9%, debt 39.0%. AV lidar stock picks.
Key Catalysts
- Revenue growth 46.1% in tech
Risk Factors
- Negative ROIC -112.3%, FCF issues
Stock #9: BRC Inc. (BRCC)
| Metric | Value |
|---|---|
| Market Cap | $176.3M |
| Quality Rating | 5.3 |
| Intrinsic Value | $2.9 |
| 1Y Return | -70.0% |
| Revenue | $391.4M |
| Free Cash Flow | ($3,555.0K) |
| Revenue Growth | (3.4%) |
| FCF margin | (0.9%) |
| Gross margin | 36.3% |
| ROIC | (16.8%) |
| Total Debt to Equity | 85.3% |
Investment Thesis
BRC Inc. (BRCC), $176.3M cap, Quality rating 5.3, revenue $391.4M down 3.4%, near-breakeven FCF. Intrinsic $2.9, 1Y -70.0%, ROIC 16.8%, debt 85.3%. Consumer goods analysis.
Key Catalysts
- Solid gross margin 36.3%
Risk Factors
- Revenue decline, high debt 85.3%
Stock #10: Bristol-Myers Squibb Company Ce (CELG-RI)
| Metric | Value |
|---|---|
| Market Cap | $174.9M |
| Quality Rating | 6.9 |
| Intrinsic Value | $93.0 |
| 1Y Return | 98.3% |
| Revenue | $48.0B |
| Free Cash Flow | $15.3B |
| Revenue Growth | 1.3% |
| FCF margin | 31.9% |
| Gross margin | 64.3% |
| ROIC | 18.7% |
| Total Debt to Equity | 274.4% |
Investment Thesis
Bristol-Myers Squibb Company Ce (CELG-RI), $174.9M cap, top Quality rating 6.9, positive FCF $15.3B on $48.0B revenue. Intrinsic $93.0, 1Y 98.3%, ROIC 18.7%, high debt 274.4%. Pharma standout.
Key Catalysts
- Strong FCF $15.3B, ROIC 18.7%, 1Y 98.3%
Risk Factors
- Elevated debt 274.4% Total Debt to Equity
Portfolio Diversification Insights
These 10 stocks cluster in technology stock picks (lidar: AEVAW, MVIS, INVZ; crypto/mining: CLSKW, CAN, DEFT), healthcare (AGL, CELG-RI), EV (LOTWW), and consumer (BRCC). Allocation: 60% tech/crypto for growth, 20% healthcare for stability, 20% other. CLSKW and CELG-RI offer quality anchors (ROIC positive), while high-intrinsic like CAN/LOTWW add upside. Diversifying reduces sector risks, e.g., pairing crypto volatility with pharma scale.
Market Timing & Entry Strategies
Consider entry on dips below intrinsic value, using ValueSense screeners for ROIC improvements or revenue inflection. Monitor quarterly earnings for growth catalysts like CLSKW's 102% surge; avoid peaks in volatile tech. Dollar-cost average into diversified baskets, watching macro crypto/healthcare trends for 6-12 month horizons.
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's intrinsic value tools, focusing on Quality rating, ROIC, and growth metrics from curated watchlists for undervalued small-caps.
What's the best stock from this list?
CELG-RI leads with 6.9 Quality rating, positive FCF $15.3B, and 98.3% 1Y Return; CLSKW follows for growth.
Should I buy all these stocks or diversify?
Diversify across sectors like tech and healthcare to balance risks, using 10-20% allocation per stock in a watchlist.
What are the biggest risks with these picks?
Common risks include negative FCF, high debt (e.g., CELG-RI 274.4%), and sector volatility in crypto/lidar.
When is the best time to invest in these stocks?
Time entries near intrinsic values during market pullbacks or positive earnings, per ValueSense backtesting insights.