9 Best Public Sector Non Profit Software for January 2026
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Market Overview & Selection Criteria
In the current market environment, investors seek undervalued stocks with strong fundamentals amid volatility in technology, energy, and consumer sectors. ValueSense selected these 9 best stock picks using proprietary screening criteria focused on intrinsic value comparisons, quality ratings, ROIC, margins, and growth metrics. Stocks were filtered for potential undervaluation where intrinsic value suggests upside, balanced across market caps from mega-cap leaders like PLTR to micro-cap opportunities like NOTE. This stock watchlist emphasizes educational analysis of financial health, excluding traditional P/E focus to highlight cash flow generation and efficiency via ValueSense tools.
Featured Stock Analysis
Stock #1: Palantir Technologies Inc. (PLTR)
| Metric | Value |
|---|---|
| Market Cap | $402.7B |
| Quality Rating | 8.1 |
| Intrinsic Value | $21.4 |
| 1Y Return | 123.2% |
| Revenue | $3,896.2M |
| Free Cash Flow | $1,794.8M |
| Revenue Growth | 47.2% |
| FCF margin | 46.1% |
| Gross margin | 80.8% |
| ROIC | 76.6% |
| Total Debt to Equity | 3.5% |
Investment Thesis
Palantir Technologies Inc. (PLTR) stands out with a Quality rating of 8.1, the highest in this watchlist, driven by exceptional profitability metrics including ROIC at 76.6%, gross margin of 80.8%, and FCF margin of 46.1%. Despite a massive market cap of $402.7B, its intrinsic value of $21.4 indicates potential undervaluation relative to growth trajectory, supported by revenue of $3,896.2M and revenue growth of 47.2%. Free Cash Flow reached $1,794.8M with low Total Debt to Equity at 3.5%, showcasing financial strength. The 1Y Return of 123.2% reflects momentum, making PLTR a key technology pick for analysis in public-sector software themes.
Key Catalysts
- Robust revenue growth at 47.2% signals expanding AI and data analytics demand
- High FCF margin 46.1% and ROIC 76.6% indicate superior capital efficiency
- Strong gross margin 80.8% supports scalability in software services
- Minimal debt (3.5% Debt/Equity) enables aggressive reinvestment
Risk Factors
- Elevated market cap $402.7B may lead to valuation compression in tech downturns
- Dependence on government contracts could face policy shifts
- High growth expectations risk short-term volatility despite strong metrics
Stock #2: ONEOK, Inc. (OKE)
| Metric | Value |
|---|---|
| Market Cap | $46.4B |
| Quality Rating | 6.0 |
| Intrinsic Value | $185.5 |
| 1Y Return | -26.2% |
| 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) offers a Quality rating of 6.0 with a compelling intrinsic value of $185.5, highlighting undervaluation potential in the commodities space. Key metrics include market cap of $46.4B, massive revenue of $31.6B, and Free Cash Flow of $5,102.0M, bolstered by revenue growth of 58.8%. FCF margin stands at 16.2%, gross margin at 21.3%, and ROIC at 7.6%, with conservative Total Debt to Equity of 2.6%. Despite a 1Y Return of -26.2%, these figures suggest resilience in energy midstream operations for long-term analysis.
Key Catalysts
- Explosive revenue growth 58.8% from natural gas infrastructure expansion
- Strong Free Cash Flow $5,102.0M supports dividends and buybacks
- Low Total Debt to Equity 2.6% enhances financial stability
- Steady ROIC 7.6% in cyclical commodities sector
Risk Factors
- Negative 1Y Return -26.2% reflects energy price volatility
- Commodity dependence exposes to macroeconomic swings
- Moderate FCF margin 16.2% vulnerable to input cost spikes
Stock #3: Constellation Brands, Inc. (STZ)
| Metric | Value |
|---|---|
| Market Cap | $24.8B |
| Quality Rating | 5.7 |
| Intrinsic Value | $97.2 |
| 1Y Return | -36.2% |
| Revenue | $9,623.5M |
| Free Cash Flow | $518.3M |
| Revenue Growth | (5.6%) |
| FCF margin | 5.4% |
| Gross margin | 51.7% |
| ROIC | 20.4% |
| Total Debt to Equity | 3.2% |
Investment Thesis
Constellation Brands, Inc. (STZ) features a Quality rating of 5.7 and intrinsic value of $97.2, positioning it as an undervalued consumer staples play with market cap of $24.8B. Metrics show revenue of $9,623.5M, Free Cash Flow of $518.3M, slight revenue decline at 5.6%, but solid FCF margin of 5.4%, gross margin of 51.7%, and ROIC of 20.4%. Total Debt to Equity is low at 3.2%, offsetting a 1Y Return of -36.2% for potential rebound analysis in beverages.
Key Catalysts
- High gross margin 51.7% from premium brand pricing power
- Strong ROIC 20.4% demonstrates efficient operations
- Healthy Free Cash Flow $518.3M funds growth initiatives
- Low debt 3.2% provides flexibility amid sector headwinds
Risk Factors
- Revenue contraction (5.6%) signals consumer spending pressures
- Sharp 1Y Return decline -36.2% amid market rotations
- Competitive beverages landscape risks margin erosion
Stock #4: Tyler Technologies, Inc. (TYL)
| Metric | Value |
|---|---|
| Market Cap | $18.9B |
| Quality Rating | 6.1 |
| Intrinsic Value | $533.8 |
| 1Y Return | -24.2% |
| Revenue | $2,298.3M |
| Free Cash Flow | $618.9M |
| Revenue Growth | 10.6% |
| FCF margin | 26.9% |
| Gross margin | 44.8% |
| ROIC | 7.0% |
| Total Debt to Equity | 18.7% |
Investment Thesis
Tyler Technologies, Inc. (TYL) earns a Quality rating of 6.1 with standout intrinsic value of $533.8 against an market cap of $18.9B. Financials include revenue of $2,298.3M, Free Cash Flow of $618.9M, revenue growth of 10.6%, FCF margin of 26.9%, gross margin of 44.8%, and ROIC of 7.0%. Total Debt to Equity at 18.7% is manageable, despite 1Y Return of -24.2%, suiting public-sector software analysis.
Key Catalysts
- Solid revenue growth 10.6% in government tech solutions
- Attractive FCF margin 26.9% for recurring revenue model
- Stable gross margin 44.8% supports scalability
- ROIC 7.0% aligns with enterprise software peers
Risk Factors
- Negative 1Y Return -24.2% from tech sector pullback
- Higher Total Debt to Equity 18.7% than peers
- Government contract reliance poses budget risk
Stock #5: NICE Ltd. (NICE)
| Metric | Value |
|---|---|
| Market Cap | $7,068.1M |
| Quality Rating | 6.6 |
| Intrinsic Value | $291.4 |
| 1Y Return | -34.0% |
| Revenue | $2,880.5M |
| Free Cash Flow | $711.6M |
| Revenue Growth | 9.2% |
| FCF margin | 24.7% |
| Gross margin | 67.1% |
| ROIC | 14.3% |
| Total Debt to Equity | 2.2% |
Investment Thesis
NICE Ltd. (NICE) scores a Quality rating of 6.6, with intrinsic value of $291.4 and market cap of $7,068.1M. Highlights are revenue of $2,880.5M, Free Cash Flow of $711.6M, revenue growth of 9.2%, FCF margin of 24.7%, gross margin of 67.1%, and ROIC of 14.3%. Low Total Debt to Equity of 2.2% counters 1Y Return of -34.0%, ideal for analytics software evaluation.
Key Catalysts
- High gross margin 67.1% from SaaS efficiencies
- Strong FCF margin 24.7% and ROIC 14.3%
- Steady revenue growth 9.2% in customer engagement tech
- Minimal debt 2.2% bolsters balance sheet
Risk Factors
- 1Y Return drop -34.0% amid growth slowdown fears
- Currency exposure as international operator
- Competitive AI analytics market pressures
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Stock #6: Parsons Corporation (PSN)
| Metric | Value |
|---|---|
| Market Cap | $6,691.6M |
| Quality Rating | 5.9 |
| Intrinsic Value | $114.7 |
| 1Y Return | -31.3% |
| Revenue | $6,494.7M |
| Free Cash Flow | $382.8M |
| Revenue Growth | (0.2%) |
| FCF margin | 5.9% |
| Gross margin | 22.0% |
| ROIC | 6.9% |
| Total Debt to Equity | 51.9% |
Investment Thesis
Parsons Corporation (PSN) has a Quality rating of 5.9, intrinsic value of $114.7, and market cap of $6,691.6M. Data reveals revenue of $6,494.7M, Free Cash Flow of $382.8M, flat revenue growth at 0.2%, FCF margin of 5.9%, gross margin of 22.0%, and ROIC of 6.9%. Elevated Total Debt to Equity of 51.9% tempers 1Y Return of -31.3% in defense/infrastructure analysis.
Key Catalysts
- Stable revenue base $6,494.7M from government projects
- Positive Free Cash Flow $382.8M despite flat growth
- ROIC 6.9% supports infrastructure demand
- Sector tailwinds in defense spending
Risk Factors
- Stagnant revenue growth (0.2%) limits upside
- High Total Debt to Equity 51.9% raises leverage concerns
- 1Y Return decline -31.3% reflects contract delays
Stock #7: Cellebrite DI Ltd. (CLBT)
| Metric | Value |
|---|---|
| Market Cap | $4,284.4M |
| Quality Rating | 7.3 |
| Intrinsic Value | $19.2 |
| 1Y Return | -17.6% |
| Revenue | $346.9M |
| Free Cash Flow | $139.1M |
| Revenue Growth | (9.9%) |
| FCF margin | 40.1% |
| Gross margin | 84.0% |
| ROIC | 30.8% |
| Total Debt to Equity | 4.8% |
Investment Thesis
Cellebrite DI Ltd. (CLBT) boasts a Quality rating of 7.3 and intrinsic value of $19.2 with market cap of $4,284.4M. Metrics feature revenue of $346.9M, Free Cash Flow of $139.1M, revenue growth of 9.9%, high FCF margin of 40.1%, gross margin of 84.0%, and ROIC of 30.8%. Low Total Debt to Equity of 4.8% mitigates 1Y Return of -17.6% in digital intelligence tools.
Key Catalysts
- Exceptional gross margin 84.0% and FCF margin 40.1%
- Impressive ROIC 30.8% for forensic software
- Low debt 4.8% enables R&D investment
- Law enforcement demand drives recovery potential
Risk Factors
- Revenue decline (9.9%) signals market saturation
- 1Y Return -17.6% from execution hiccups
- Niche market vulnerable to regulatory changes
Stock #8: Blackbaud, Inc. (BLKB)
| Metric | Value |
|---|---|
| Market Cap | $2,911.8M |
| Quality Rating | 6.6 |
| Intrinsic Value | $6,587.0 |
| 1Y Return | -19.3% |
| Revenue | $282.0B |
| Free Cash Flow | $276.1M |
| Revenue Growth | 24,461.1% |
| FCF margin | 0.1% |
| Gross margin | 59.6% |
| ROIC | 4,571.7% |
| Total Debt to Equity | 984.0% |
Investment Thesis
Blackbaud, Inc. (BLKB) achieves Quality rating of 6.6, extraordinary intrinsic value of $6,587.0, and market cap of $2,911.8M. Standouts include revenue of $282.0B, Free Cash Flow of $276.1M, explosive revenue growth of 24,461.1%, FCF margin of 0.1%, gross margin of 59.6%, and ROIC of 4,571.7%. High Total Debt to Equity of 984.0% accompanies 1Y Return of -19.3% in nonprofit software.
Key Catalysts
- Massive revenue growth 24,461.1% from scale
- Sky-high ROIC 4,571.7% indicates efficiency
- Solid gross margin 59.6% in SaaS model
- Nonprofit sector stability aids recurring revenue
Risk Factors
- Extreme Total Debt to Equity 984.0% poses solvency risk
- Thin FCF margin 0.1% despite growth
- 1Y Return -19.3% reflects debt burden
Stock #9: FiscalNote Holdings, Inc. (NOTE)
| Metric | Value |
|---|---|
| Market Cap | $20.4M |
| Quality Rating | 5.7 |
| Intrinsic Value | $3,777.7 |
| 1Y Return | 52.9% |
| Revenue | $29.5B |
| Free Cash Flow | ($16.0M) |
| Revenue Growth | 23,522.0% |
| FCF margin | (0.1%) |
| Gross margin | 82.0% |
| ROIC | (2,999.8%) |
| Total Debt to Equity | 39.4% |
Investment Thesis
FiscalNote Holdings, Inc. (NOTE) holds a Quality rating of 5.7, massive intrinsic value of $3,777.7, and tiny market cap of $20.4M. Figures show revenue of $29.5B, negative Free Cash Flow of $16.0M, huge revenue growth of 23,522.0%, FCF margin of 0.1%, gross margin of 82.0%, and ROIC of 2,999.8%. Total Debt to Equity at 39.4% pairs with positive 1Y Return of 52.9% for high-risk micro-cap analysis.
Key Catalysts
- Phenomenal revenue growth 23,522.0% signals hyper-scaling
- High gross margin 82.0% in AI policy tech
- Positive 1Y Return 52.9% shows momentum
- Low market cap offers asymmetric upside potential
Risk Factors
- Negative Free Cash Flow and ROIC indicate burn rate
- High Total Debt to Equity 39.4% for small cap
- Extreme volatility in micro-cap space
Portfolio Diversification Insights
These 9 stock picks provide diversification across technology (PLTR, TYL, NICE, CLBT, BLKB, NOTE), energy/commodities (OKE), consumer staples (STZ), and infrastructure/defense (PSN). Sector allocation leans tech-heavy 67% for growth exposure, balanced by stable energy 11% and consumer 11% plays. PLTR's mega-cap stability complements micro-cap NOTE's upside, while low-debt leaders like OKE and NICE offset leveraged names like BLKB. Cross-analysis shows high ROIC in PLTR/CLBT pairing with OKE's cash flow for reduced correlation. Quality ratings average 6.4, with intrinsic value upside prominent in TYL/BLKB, creating a stock watchlist for balanced value stock exposure.
Market Timing & Entry Strategies
Consider positions during sector rotations, such as tech dips for PLTR/NICE or energy rebounds for OKE. Monitor revenue growth inflection points—enter growth leaders like NOTE on pullbacks below intrinsic value. Use dollar-cost averaging for volatile small caps (PSN, CLBT), targeting 5-10% portfolio allocation per stock. Track FCF margin improvements quarterly via ValueSense screeners for optimal entry, avoiding overconcentration in any sector.
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FAQ Section
How were these stocks selected?
These 9 best stock picks were chosen via ValueSense criteria emphasizing intrinsic value upside, quality ratings above 5.5, strong margins, and ROIC, screened from technology and commodities for diversified investment opportunities.
What's the best stock from this list?
PLTR leads with the highest Quality rating 8.1, top ROIC 76.6%, and 123.2% 1Y Return, though TYL and BLKB show massive intrinsic value potential for individual analysis.
Should I buy all these stocks or diversify?
Diversification across sectors like tech (PLTR, NICE) and energy (OKE) reduces risk; allocate based on market cap size and personal risk tolerance rather than holding the full stock watchlist.
What are the biggest risks with these picks?
Key concerns include debt levels (BLKB at 984.0%), negative growth (STZ, PSN), and volatility in small caps (NOTE), alongside sector-specific exposures like commodities for OKE.
When is the best time to invest in these stocks?
Optimal timing aligns with intrinsic value discounts during market corrections, revenue growth accelerations, or improved FCF margins, using ValueSense charting for entry signals.