10 Best Undervalued Growth Stocks Insiders Are Buying for February 2026
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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
In the current market environment, investors are seeking undervalued stocks with strong intrinsic value potential amid volatility in technology, energy, and financial sectors. ValueSense analysis highlights companies trading significantly below their calculated intrinsic values, selected based on high Quality ratings, robust Free Cash Flow (FCF) generation, attractive margins, and positive growth metrics. These top stock picks were chosen using ValueSense's proprietary methodology, prioritizing ROIC, revenue growth, low debt-to-equity ratios where possible, and substantial upside to intrinsic value estimates. This creates a diversified stock watchlist blending high-growth tech leaders with stable energy infrastructure and REIT plays, ideal for retail investors exploring best value stocks and investment opportunities.
Featured Stock Analysis
Stock #1: Micron Technology, Inc. (MU)
| Metric | Value |
|---|---|
| Market Cap | $486.8B |
| Quality Rating | 8.2 |
| Intrinsic Value | $419.0 |
| 1Y Return | 348.5% |
| Revenue | $42.3B |
| Free Cash Flow | $17.3B |
| Revenue Growth | 45.4% |
| FCF margin | 40.9% |
| Gross margin | 45.3% |
| ROIC | 23.4% |
| Total Debt to Equity | 21.2% |
Investment Thesis
Micron Technology, Inc. (MU) stands out as a top performer in the technology sector with a stellar Quality rating of 8.2, the highest in this collection. Trading at a market cap of $486.8B, MU demonstrates exceptional financial health through $42.3B in revenue and massive $17.3B free cash flow, supported by 45.4% revenue growth and a robust 40.9% FCF margin. Its intrinsic value of $419.0 suggests significant undervaluation, backed by strong 45.3% gross margin, 23.4% ROIC, and a manageable 21.2% total debt to equity. The 348.5% 1Y return underscores its momentum in memory and semiconductor demand, positioning MU as a compelling pick for those analyzing MU stock analysis in growth-oriented portfolios.
Key Catalysts
- Explosive 45.4% revenue growth driven by AI and data center demand.
- Industry-leading 40.9% FCF margin and $17.3B cash flow for reinvestment.
- High 23.4% ROIC indicating efficient capital allocation.
- Low 21.2% debt-to-equity supporting financial flexibility.
Risk Factors
- Cyclical semiconductor industry exposure to supply chain disruptions.
- High market cap may limit short-term volatility upside.
- Dependence on global tech spending cycles.
Stock #2: ConocoPhillips (COP)
| Metric | Value |
|---|---|
| Market Cap | $129.2B |
| Quality Rating | 6.3 |
| Intrinsic Value | $114.4 |
| 1Y Return | 3.6% |
| Revenue | $60.2B |
| Free Cash Flow | $16.6B |
| Revenue Growth | 8.1% |
| FCF margin | 27.6% |
| Gross margin | 30.1% |
| ROIC | 5.4% |
| Total Debt to Equity | 36.2% |
Investment Thesis
ConocoPhillips (COP), a major energy player, offers solid fundamentals with a $129.2B market cap and Quality rating of 6.3. Key metrics include $60.2B revenue, $16.6B free cash flow, 8.1% revenue growth, and 27.6% FCF margin, complemented by 30.1% gross margin and 5.4% ROIC. The intrinsic value of $114.4 points to undervaluation, despite a modest 3.6% 1Y return and 36.2% total debt to equity. This analysis frames COP as a stable commodity sector option in COP stock analysis, balancing energy exposure with cash generation for long-term value seekers.
Key Catalysts
- Strong $16.6B FCF enabling dividends and buybacks.
- 27.6% FCF margin in a high-revenue $60.2B operation.
- Oil price resilience supporting 8.1% revenue growth.
- Moderate 36.2% debt relative to scale.
Risk Factors
- Commodity price volatility impacting revenues.
- Lower 5.4% ROIC compared to peers.
- Energy transition pressures on traditional producers.
Stock #3: Energy Transfer LP (ET)
| Metric | Value |
|---|---|
| Market Cap | $67.1B |
| Quality Rating | 5.4 |
| Intrinsic Value | $43.3 |
| 1Y Return | -11.0% |
| Revenue | $79.8B |
| Free Cash Flow | $5,262.0M |
| Revenue Growth | (4.7%) |
| FCF margin | 6.6% |
| Gross margin | 20.4% |
| ROIC | 8.3% |
| Total Debt to Equity | 57.2% |
Investment Thesis
Energy Transfer LP (ET) provides midstream energy infrastructure with a $67.1B market cap and Quality rating of 5.4. It generates $79.8B revenue and $5,262.0M free cash flow, though with 4.7% revenue growth and 6.6% FCF margin. Strengths include 20.4% gross margin, 8.3% ROIC, but higher 57.2% total debt to equity tempers the $43.3 intrinsic value appeal. Despite -11.0% 1Y return, ET's scale makes it a watchlist candidate for ET stock analysis in diversified energy plays.
Key Catalysts
- Massive $79.8B revenue from pipeline networks.
- Stable 8.3% ROIC in infrastructure assets.
- $5,262.0M FCF for distributions.
- Defensive midstream positioning.
Risk Factors
- Negative 4.7% revenue growth signals contraction.
- Elevated 57.2% debt-to-equity ratio.
- Low 6.6% FCF margin limits flexibility.
Stock #4: Arthur J. Gallagher & Co. (AJG)
| Metric | Value |
|---|---|
| Market Cap | $65.0B |
| Quality Rating | 5.5 |
| Intrinsic Value | $269.1 |
| 1Y Return | -15.9% |
| Revenue | $13.9B |
| Free Cash Flow | $1,071.6M |
| Revenue Growth | 20.7% |
| FCF margin | 7.7% |
| Gross margin | 54.8% |
| ROIC | 5.5% |
| Total Debt to Equity | 4.9% |
Investment Thesis
Arthur J. Gallagher & Co. (AJG), in the insurance brokerage space, features a $65.0B market cap and Quality rating of 5.5. With $13.9B revenue, $1,071.6M free cash flow, 20.7% revenue growth, and 7.7% FCF margin, it boasts 54.8% gross margin and low 4.9% total debt to equity. The $269.1 intrinsic value highlights upside despite -15.9% 1Y return, positioning AJG for AJG analysis in financial services.
Key Catalysts
- Robust 20.7% revenue growth in brokerage services.
- Exceptional 54.8% gross margin.
- Minimal 4.9% debt for stability.
- 5.5% ROIC with growth potential.
Risk Factors
- Modest $1,071.6M FCF scale.
- Recent -15.9% 1Y return volatility.
- Insurance cycle dependencies.
Stock #5: MPLX LP (MPLX)
| Metric | Value |
|---|---|
| Market Cap | $56.9B |
| Quality Rating | 7.3 |
| Intrinsic Value | $103.6 |
| 1Y Return | 6.7% |
| Revenue | $12.1B |
| Free Cash Flow | $6,088.0M |
| Revenue Growth | 11.2% |
| FCF margin | 50.2% |
| Gross margin | 49.0% |
| ROIC | 18.4% |
| Total Debt to Equity | 179.6% |
Investment Thesis
MPLX LP (MPLX) excels in energy midstream with $56.9B market cap and strong Quality rating of 7.3. Metrics show $12.1B revenue, $6,088.0M free cash flow, 11.2% revenue growth, and impressive 50.2% FCF margin, plus 49.0% gross margin and 18.4% ROIC. High 179.6% total debt to equity contrasts the $103.6 intrinsic value, with 6.7% 1Y return supporting MPLX analysis.
Key Catalysts
- Outstanding 50.2% FCF margin and $6,088.0M cash flow.
- High 18.4% ROIC efficiency.
- 11.2% revenue growth momentum.
- Yield-friendly structure.
Risk Factors
- Very high 179.6% debt-to-equity.
- Midstream sector regulation risks.
- Leverage sensitivity to rates.
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Stock #6: ONEOK, Inc. (OKE)
| Metric | Value |
|---|---|
| Market Cap | $49.3B |
| Quality Rating | 6.1 |
| Intrinsic Value | $185.1 |
| 1Y Return | -19.9% |
| Revenue | $31.6B |
| Free Cash Flow | $5,102.0M |
| Revenue Growth | 58.8% |
| FCF margin | 16.2% |
| Gross margin | 21.3% |
| ROIC | 7.6% |
| Total Debt to Equity | 2.6% |
Investment Thesis
ONEOK, Inc. (OKE) in natural gas pipelines has $49.3B market cap and Quality rating of 6.1. It reports $31.6B revenue, $5,102.0M free cash flow, explosive 58.8% revenue growth, 16.2% FCF margin, 21.3% gross margin, and low 2.6% total debt to equity. $185.1 intrinsic value offers appeal despite -19.9% 1Y return, key for OKE stock analysis.
Key Catalysts
- Phenomenal 58.8% revenue growth.
- Low 2.6% debt-to-equity.
- Solid $5,102.0M FCF.
- 7.6% ROIC stability.
Risk Factors
- Sharp -19.9% 1Y return.
- Gas price fluctuations.
- Growth sustainability questions.
Stock #7: Public Storage (PSA)
| Metric | Value |
|---|---|
| Market Cap | $48.1B |
| Quality Rating | 6.9 |
| Intrinsic Value | $424.7 |
| 1Y Return | -3.4% |
| Revenue | $4,785.7M |
| Free Cash Flow | $3,118.3M |
| Revenue Growth | 2.3% |
| FCF margin | 65.2% |
| Gross margin | 73.0% |
| ROIC | 482.8% |
| Total Debt to Equity | 106.8% |
Investment Thesis
Public Storage (PSA), a REIT leader, boasts $48.1B market cap and Quality rating of 6.9. Figures include $4,785.7M revenue, $3,118.3M free cash flow, 2.3% revenue growth, elite 65.2% FCF margin, 73.0% gross margin, and extraordinary 482.8% ROIC. $424.7 intrinsic value shines despite -3.4% 1Y return and 106.8% debt, ideal for PSA analysis.
Key Catalysts
- Exceptional 482.8% ROIC and 73.0% gross margin.
- High 65.2% FCF margin.
- Defensive self-storage demand.
- $3,118.3M cash generation.
Risk Factors
- Elevated 106.8% debt-to-equity.
- Slow 2.3% revenue growth.
- Real estate interest rate sensitivity.
Stock #8: Cheniere Energy, Inc. (LNG)
| Metric | Value |
|---|---|
| Market Cap | $46.5B |
| Quality Rating | 6.5 |
| Intrinsic Value | $394.3 |
| 1Y Return | -7.7% |
| Revenue | $18.7B |
| Free Cash Flow | $4,556.0M |
| Revenue Growth | 16.5% |
| FCF margin | 24.3% |
| Gross margin | 39.2% |
| ROIC | 12.8% |
| Total Debt to Equity | 28.2% |
Investment Thesis
Cheniere Energy, Inc. (LNG) in LNG export has $46.5B market cap and Quality rating of 6.5. It delivers $18.7B revenue, $4,556.0M free cash flow, 16.5% revenue growth, 24.3% FCF margin, 39.2% gross margin, and 12.8% ROIC, with 28.2% debt. $394.3 intrinsic value and -7.7% 1Y return support LNG stock analysis.
Key Catalysts
- 16.5% revenue growth from global LNG demand.
- Strong 12.8% ROIC.
- $4,556.0M FCF firepower.
- Export market tailwinds.
Risk Factors
- Geopolitical energy risks.
- -7.7% 1Y return lag.
- Contract renewal uncertainties.
Stock #9: Fiserv, Inc. (FISV)
| Metric | Value |
|---|---|
| Market Cap | $34.2B |
| Quality Rating | 6.9 |
| Intrinsic Value | $155.3 |
| 1Y Return | -70.5% |
| Revenue | $21.2B |
| Free Cash Flow | $4,619.0M |
| Revenue Growth | 5.2% |
| FCF margin | 21.8% |
| Gross margin | 60.5% |
| ROIC | 10.9% |
| Total Debt to Equity | 120.1% |
Investment Thesis
Fiserv, Inc. (FISV) in fintech services shows $34.2B market cap and Quality rating of 6.9. With $21.2B revenue, $4,619.0M free cash flow, 5.2% revenue growth, 21.8% FCF margin, 60.5% gross margin, and 10.9% ROIC, plus 120.1% debt, the $155.3 intrinsic value counters -70.5% 1Y return in FISV analysis.
Key Catalysts
- High 60.5% gross margin.
- Reliable $4,619.0M FCF.
- 10.9% ROIC in payments.
- Digital transaction growth.
Risk Factors
- Severe -70.5% 1Y return.
- High 120.1% debt-to-equity.
- Fintech competition.
Stock #10: Fifth Third Bancorp (FITB)
| Metric | Value |
|---|---|
| Market Cap | $32.7B |
| Quality Rating | 6.9 |
| Intrinsic Value | $111.5 |
| 1Y Return | 16.0% |
| Revenue | $12.9B |
| Free Cash Flow | $3,585.0M |
| Revenue Growth | (1.6%) |
| FCF margin | 27.9% |
| Gross margin | 65.3% |
| ROIC | (16.6%) |
| Total Debt to Equity | 66.8% |
Investment Thesis
Fifth Third Bancorp (FITB), a regional bank, has $32.7B market cap and Quality rating of 6.9. It posts $12.9B revenue, $3,585.0M free cash flow, 1.6% revenue growth, 27.9% FCF margin, 65.3% gross margin, but negative 16.6% ROIC and 66.8% debt. $111.5 intrinsic value and 16.0% 1Y return aid FITB analysis.
Key Catalysts
- Positive 16.0% 1Y return.
- Strong 27.9% FCF margin.
- 65.3% gross margin efficiency.
- Banking recovery potential.
Risk Factors
- Negative 16.6% ROIC.
- 1.6% revenue contraction.
- Interest rate and credit risks.
Portfolio Diversification Insights
This stock watchlist offers balanced sector allocation: technology (MU), upstream energy (COP), midstream/pipelines (ET, MPLX, OKE, LNG), insurance/financials (AJG, FITB, FISV), and REITs (PSA). Energy midstream dominates for income stability, complemented by MU's growth and PSA's high margins. Cross-references show synergy—energy picks like COP and MPLX hedge commodity risks, while low-debt names (OKE, AJG) offset leveraged ones (MPLX, PSA). Overall, ~60% energy, 20% tech/fintech, 20% other provides diversification across undervalued stocks, reducing sector-specific volatility while targeting intrinsic value upside.
Market Timing & Entry Strategies
Consider entry on pullbacks to 52-week lows or when energy prices stabilize, aligning with positive revenue growth trends seen in OKE 58.8% and MU 45.4%. Monitor FCF margins above 20% for conviction; scale in gradually for high-debt names like MPLX. Use intrinsic value gaps (e.g., MU at $419.0) as targets, watching ROIC improvements. This educational framing supports position sizing in investment ideas without timing the market precisely.
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FAQ Section
How were these stocks selected?
These top 10 stock picks were curated from ValueSense data emphasizing intrinsic value upside, Quality ratings above 5.4, strong FCF, and growth metrics, focusing on undervalued opportunities across sectors for a comprehensive stock watchlist.
What's the best stock from this list?
Micron Technology (MU) leads with the highest Quality rating 8.2, 348.5% 1Y return, and top metrics like 23.4% ROIC, making it a standout in best value stocks analysis, though all offer unique merits.
Should I buy all these stocks or diversify?
Diversification across energy 60%, tech, and financials in this collection mitigates risks; educational analysis suggests blending high-growth (MU) with stable income (PSA, MPLX) rather than concentrating.
What are the biggest risks with these picks?
Key concerns include high debt (MPLX at 179.6%, PSA at 106.8%), sector volatility (energy prices for COP/ET), negative returns (FISV -70.5%), and cyclical exposures, balanced by FCF strength.
When is the best time to invest in these stocks?
Optimal timing aligns with FCF beats, margin expansions (e.g., PSA's 65.2%), or sector recoveries; monitor intrinsic value gaps and revenue growth like OKE's 58.8% for entry points in this stock picks overview.