A high performance TMR sensor is fabricated by employing a free layer comprised of CoBX with a λ between −5×10−6 and 0 on a MgOX tunnel barrier. Optionally, a FeCo/CoBX free layer configuration may be used where x is about 1 to 30 atomic %. Trilayer configurations represented by FeCo/CoFeB/CoBX, FeCo/CoBX/CoFeB, FeCoY/CoFeW/CoBX, or FeCoY/FeB/CoBX may also be employed. Alternatively, CoNiFeB or CoNiFeBM formed by co-sputtering CoB with CoNiFe or CoNiFeM, respectively, where M is V, Ti, Zr, Nb, Hf, Ta, or Mo may be substituted for CoBx in the aforementioned embodiments. A 15 to 30% in improvement in TMR ratio over a conventional CoFe/NiFe free layer is achieved while maintaining a low Hc and RA<3 ohm-um2. In bilayer or trilayer embodiments, λ between −5×10−6 and 5×10−6 is achieved by combining CoBx (−λ) and one or more layers having a positive λ.