10 Best Horizontal Saas for January 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
In the current market environment, investors seek undervalued stocks with strong fundamentals amid volatility in technology and growth sectors. ValueSense data highlights companies with attractive intrinsic value metrics, quality ratings above 5.0, and positive free cash flow generation, even as 1Y returns vary widely. These top stock picks were selected using ValueSense's proprietary screening methodology, focusing on ROIC, FCF margins, revenue growth, and comparisons to intrinsic value estimates. This approach identifies best value stocks across mid-cap ranges ($7B-$21B market caps), prioritizing those showing operational efficiency and growth potential for diversified stock watchlists.
Featured Stock Analysis
Stock #1: CMS Energy Corporation (CMS)
| Metric | Value |
|---|---|
| Market Cap | $21.1B |
| Quality Rating | 5.8 |
| Intrinsic Value | $47.1 |
| 1Y Return | 6.7% |
| Revenue | $8,295.0M |
| Free Cash Flow | $1,032.0M |
| Revenue Growth | 11.0% |
| FCF margin | 12.4% |
| Gross margin | 31.8% |
| ROIC | 10.4% |
| Total Debt to Equity | (51.7%) |
Investment Thesis
CMS Energy Corporation (CMS) presents a stable utility play with a Quality rating of 5.8 and an intrinsic value of $47.1, suggesting potential upside for value-focused analysis. The company reports a market cap of $21.1B, revenue of $8,295.0M, and free cash flow of $1,032.0M, supported by 11.0% revenue growth and a solid 12.4% FCF margin. Gross margin stands at 31.8% with ROIC at 10.4%, indicating efficient capital use despite a 1Y return of 6.7%. Low Total Debt to Equity of 51.7% reflects prudent balance sheet management, making CMS a defensive option in energy sectors for CMS analysis.
Key Catalysts
- Strong revenue growth at 11.0% drives cash flow stability
- Healthy FCF margin of 12.4% supports ongoing operations
- Attractive ROIC of 10.4% signals efficient returns
Risk Factors
- Modest 1Y return of 6.7% may lag high-growth peers
- Utility sector sensitivity to regulatory changes
Stock #2: NetApp, Inc. (NTAP)
| Metric | Value |
|---|---|
| Market Cap | $21.1B |
| Quality Rating | 6.9 |
| Intrinsic Value | $136.8 |
| 1Y Return | -7.7% |
| Revenue | $6,635.0M |
| Free Cash Flow | $1,598.0M |
| Revenue Growth | 2.5% |
| FCF margin | 24.1% |
| Gross margin | 70.3% |
| ROIC | 29.8% |
| Total Debt to Equity | 252.1% |
Investment Thesis
NetApp, Inc. (NTAP) stands out in data storage with a Quality rating of 6.9 and intrinsic value of $136.8, positioning it as a compelling tech value play. Market cap is $21.1B, with revenue at $6,635.0M and robust free cash flow of $1,598.0M. Despite 2.5% revenue growth and a -7.7% 1Y return, standout metrics include 24.1% FCF margin, 70.3% gross margin, and exceptional 29.8% ROIC. Elevated Total Debt to Equity at 252.1% warrants monitoring, but high margins suggest resilience in enterprise storage demand for NTAP stock analysis.
Key Catalysts
- Superior gross margin of 70.3% reflects pricing power
- High ROIC at 29.8% indicates strong capital efficiency
- Solid FCF of $1,598.0M funds innovation
Risk Factors
- High Total Debt to Equity of 252.1% increases leverage risk
- Recent -7.7% 1Y return amid slower 2.5% revenue growth
Stock #3: CGI Inc. (GIB)
| Metric | Value |
|---|---|
| Market Cap | $20.4B |
| Quality Rating | 6.5 |
| Intrinsic Value | $143.7 |
| 1Y Return | -16.5% |
| Revenue | CA$15.9B |
| Free Cash Flow | CA$1,997.9M |
| Revenue Growth | 8.3% |
| FCF margin | 12.6% |
| Gross margin | 20.6% |
| ROIC | 13.7% |
| Total Debt to Equity | 43.5% |
Investment Thesis
CGI Inc. (GIB), a global IT services firm, shows a Quality rating of 6.5 and intrinsic value of $143.7, highlighting undervaluation potential. With a $20.4B market cap, revenue reaches CA$15.9B and free cash flow CA$1,997.9M, backed by 8.3% growth and 12.6% FCF margin. Gross margin is 20.6%, ROIC 13.7%, though 1Y return lags at -16.5%. Moderate Total Debt to Equity of 43.5% supports steady operations, ideal for GIB analysis in consulting and outsourcing.
Key Catalysts
- Consistent 8.3% revenue growth in IT services
- Strong FCF at CA$1,997.9M bolsters financial health
- ROIC of 13.7% demonstrates profitability
Risk Factors
- Negative 1Y return of -16.5% reflects market pressures
- Currency exposure with CA$-denominated metrics
Stock #4: HubSpot, Inc. (HUBS)
| Metric | Value |
|---|---|
| Market Cap | $20.1B |
| Quality Rating | 6.0 |
| Intrinsic Value | $171.3 |
| 1Y Return | -45.2% |
| Revenue | $2,987.7M |
| Free Cash Flow | $655.0M |
| Revenue Growth | 19.2% |
| FCF margin | 21.9% |
| Gross margin | 84.1% |
| ROIC | (6.0%) |
| Total Debt to Equity | 14.7% |
Investment Thesis
HubSpot, Inc. (HUBS) offers CRM software growth with a Quality rating of 6.0 and intrinsic value of $171.3. Market cap is $20.1B, revenue $2,987.7M, free cash flow $655.0M, fueled by 19.2% growth and 21.9% FCF margin. Exceptional 84.1% gross margin shines, despite negative ROIC of 6.0% and -45.2% 1Y return. Low Total Debt to Equity at 14.7% aids scalability in marketing tech for HUBS stock picks.
Key Catalysts
- Rapid 19.2% revenue growth signals demand
- High gross margin of 84.1% supports expansion
- Improving FCF margin at 21.9%
Risk Factors
- Negative ROIC of 6.0% indicates capital inefficiency
- Sharp -45.2% 1Y return highlights volatility
Stock #5: GoDaddy Inc. (GDDY)
| Metric | Value |
|---|---|
| Market Cap | $16.6B |
| Quality Rating | 7.0 |
| Intrinsic Value | $185.7 |
| 1Y Return | -40.4% |
| Revenue | $4,869.8M |
| Free Cash Flow | $1,537.9M |
| Revenue Growth | 8.8% |
| FCF margin | 31.6% |
| Gross margin | 61.5% |
| ROIC | 19.4% |
| Total Debt to Equity | 4,193.5% |
Investment Thesis
GoDaddy Inc. (GDDY) dominates web services with top Quality rating of 7.0 and intrinsic value $185.7. At $16.6B market cap, revenue is $4,869.8M, free cash flow $1,537.9M, with 8.8% growth and elite 31.6% FCF margin. Gross margin 61.5%, ROIC 19.4%, but 1Y return -40.4%. Extreme Total Debt to Equity of 4,193.5% flags leverage, yet cash generation merits GDDY analysis in digital infrastructure.
Key Catalysts
- Leading FCF margin of 31.6% drives shareholder value
- Strong ROIC at 19.4% reflects operational strength
- Steady 8.8% revenue growth in core domains
Risk Factors
- Very high Total Debt to Equity at 4,193.5%
- Significant -40.4% 1Y return
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 #6: Confluent, Inc. (CFLT)
| Metric | Value |
|---|---|
| Market Cap | $10.4B |
| Quality Rating | 5.0 |
| Intrinsic Value | $30.5 |
| 1Y Return | 6.6% |
| Revenue | $1,113.1M |
| Free Cash Flow | $53.5M |
| Revenue Growth | 21.6% |
| FCF margin | 4.8% |
| Gross margin | 74.1% |
| ROIC | (62.7%) |
| Total Debt to Equity | 98.9% |
Investment Thesis
Confluent, Inc. (CFLT) in data streaming has Quality rating 5.0 and intrinsic value $30.5. Market cap $10.4B, revenue $1,113.1M, free cash flow $53.5M, with 21.6% growth but low 4.8% FCF margin. High gross margin 74.1%, deeply negative ROIC 62.7%, and 6.6% 1Y return. Total Debt to Equity 98.9% adds caution for CFLT stock analysis in cloud-native tech.
Key Catalysts
- Robust 21.6% revenue growth in data platforms
- Strong gross margin of 74.1%
- Positive FCF turning at $53.5M
Risk Factors
- Poor ROIC of 62.7% signals high burn
- Thin FCF margin at 4.8%
Stock #7: ServiceTitan, Inc. (TTAN)
| Metric | Value |
|---|---|
| Market Cap | $9,505.7M |
| Quality Rating | 5.2 |
| Intrinsic Value | $13.6K |
| 1Y Return | 0.1% |
| Revenue | $707.2B |
| Free Cash Flow | $90.2B |
| Revenue Growth | 96,025.2% |
| FCF margin | 12.8% |
| Gross margin | 70.2% |
| ROIC | (11.3%) |
| Total Debt to Equity | 3.6% |
Investment Thesis
ServiceTitan, Inc. (TTAN) shows explosive SaaS metrics with Quality rating 5.2 and intrinsic value $13.6K. Market cap $9,505.7M, massive revenue $707.2B, free cash flow $90.2B, and staggering 96,025.2% growth. FCF margin 12.8%, gross margin 70.2%, ROIC 11.3%, flat 0.1% 1Y return. Low Total Debt to Equity 3.6% supports scale in field service software for TTAN analysis.
Key Catalysts
- Phenomenal 96,025.2% revenue growth
- Huge FCF at $90.2B with 12.8% margin
- High gross margin of 70.2%
Risk Factors
- Negative ROIC of 11.3%
- Extraordinary scale may face sustainability questions
Stock #8: UiPath Inc. (PATH)
| Metric | Value |
|---|---|
| Market Cap | $8,575.9M |
| Quality Rating | 7.3 |
| Intrinsic Value | $25.4 |
| 1Y Return | 22.8% |
| Revenue | $1,553.1M |
| Free Cash Flow | $311.6M |
| Revenue Growth | 10.1% |
| FCF margin | 20.1% |
| Gross margin | 83.2% |
| ROIC | 26.2% |
| Total Debt to Equity | 3.7% |
Investment Thesis
UiPath Inc. (PATH) leads RPA with Quality rating 7.3 and intrinsic value $25.4. Market cap $8,575.9M, revenue $1,553.1M, free cash flow $311.6M, 10.1% growth, 20.1% FCF margin. Gross margin 83.2%, ROIC 26.2%, positive 22.8% 1Y return. Minimal Total Debt to Equity 3.7% enhances appeal for PATH analysis in automation.
Key Catalysts
- Excellent ROIC of 26.2%
- High gross margin 83.2% and 20.1% FCF margin
- Positive 22.8% 1Y return momentum
Risk Factors
- Competition in RPA space
- Growth at 10.1% trails hyper-scalers
Stock #9: Paylocity Holding Corporation (PCTY)
| Metric | Value |
|---|---|
| Market Cap | $8,077.6M |
| Quality Rating | 6.6 |
| Intrinsic Value | $135.7 |
| 1Y Return | -25.3% |
| Revenue | $1,640.4M |
| Free Cash Flow | $381.8M |
| Revenue Growth | 13.3% |
| FCF margin | 23.3% |
| Gross margin | 68.8% |
| ROIC | 36.3% |
| Total Debt to Equity | 11.6% |
Investment Thesis
Paylocity Holding Corporation (PCTY) excels in HR tech with Quality rating 6.6 and intrinsic value $135.7. Market cap $8,077.6M, revenue $1,640.4M, free cash flow $381.8M, 13.3% growth, 23.3% FCF margin. Gross margin 68.8%, top ROIC 36.3%, despite -25.3% 1Y return. Total Debt to Equity 11.6% is manageable for PCTY stock analysis.
Key Catalysts
- Outstanding ROIC at 36.3%
- Strong 23.3% FCF margin and 13.3% growth
- Solid gross margin of 68.8%
Risk Factors
- -25.3% 1Y return indicates volatility
- Payroll sector cyclicality
Stock #10: Aurora Innovation, Inc. (AUR)
| Metric | Value |
|---|---|
| Market Cap | $7,233.1M |
| Quality Rating | 5.1 |
| Intrinsic Value | $0.7 |
| 1Y Return | -36.6% |
| Revenue | $2,000.0K |
| Free Cash Flow | ($608.0M) |
| Revenue Growth | N/A |
| FCF margin | (30,400.0%) |
| Gross margin | (1,700.0%) |
| ROIC | (103.8%) |
| Total Debt to Equity | 8.8% |
Investment Thesis
Aurora Innovation, Inc. (AUR) in autonomous driving has Quality rating 5.1 and low intrinsic value $0.7. Market cap $7,233.1M, minimal revenue $2,000.0K, negative free cash flow $608.0M, N/A growth. FCF margin 30,400.0%, gross margin 1,700.0%, ROIC 103.8%, -36.6% 1Y return. Total Debt to Equity 8.8% reflects early-stage risks for AUR analysis.
Key Catalysts
- Potential in autonomous tech disruption
- Low debt at 8.8% relative to equity
Risk Factors
- Deeply negative ROIC 103.8% and margins
- Negative FCF and low revenue base
Portfolio Diversification Insights
This stock watchlist balances utilities (CMS), storage/tech (NTAP), IT services (GIB), and heavy SaaS exposure (HUBS, GDDY, CFLT, TTAN, PATH, PCTY), with autonomous outlier (AUR). Sector allocation favors technology stock picks 80% for growth, tempered by CMS's defensive energy tilt. High-ROIC names like PATH 26.2% and PCTY 36.3% complement lower-return stabilizers like NTAP. Pairing high-growth TTAN with cash-rich GDDY reduces volatility, while monitoring debt in NTAP/GDDY. Overall, 60% in profitable FCF generators promotes portfolio diversification across mid-caps.
Market Timing & Entry Strategies
Consider positions during sector dips, such as tech pullbacks where intrinsic value gaps widen (e.g., HUBS at $171.3 IV). Ladder entries for volatile names like AUR or TTAN on 5-10% corrections, using ValueSense charting for ROIC trends. Stable picks like CMS suit immediate allocation amid rate uncertainty. Monitor quarterly revenue beats (e.g., CFLT's 21.6% growth) for momentum adds, scaling into improving 1Y returns like PATH's 22.8%.
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 top 10 stock picks were curated from ValueSense data emphasizing Quality ratings 5.0+, positive FCF where possible, revenue growth, and intrinsic value upside, screened for mid-cap investment opportunities.
What's the best stock from this list?
UiPath (PATH) leads with 7.3 Quality rating, 26.2% ROIC, and 22.8% 1Y return, though "best" depends on risk tolerance—compare via ValueSense dashboards for personalized stock analysis.
Should I buy all these stocks or diversify?
Diversification across sectors like SaaS and utilities reduces risk; allocate based on portfolio insights, not all-in, using ValueSense screeners for balanced stock watchlists.
What are the biggest risks with these picks?
Key concerns include high debt (GDDY 4,193.5%, NTAP 252.1%), negative ROIC (AUR -103.8%, CFLT -62.7%), and 1Y declines (HUBS -45.2%), per ValueSense health metrics.
When is the best time to invest in these stocks?
Target entry on metric improvements like revenue growth beats or IV expansions, using ValueSense backtesting for historical patterns in these undervalued stocks.