9 Best Devops for January 2026
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Market Overview & Selection Criteria
The technology sector, particularly DevOps and cloud data infrastructure, continues to drive innovation amid evolving market dynamics in 2026. ValueSense analysis highlights undervalued opportunities in high-growth software firms where intrinsic value exceeds current pricing, based on metrics like revenue growth, free cash flow margins, and quality ratings. These 9 best DevOps stock picks were selected using ValueSense's proprietary methodology, prioritizing companies with strong gross margins above 67%, positive free cash flow, and quality ratings of 5.0 or higher. Selection emphasizes intrinsic value upside, sector relevance in data management and developer tools, and balanced exposure to cloud-native solutions, ensuring a watchlist for retail investors seeking undervalued stocks to buy in the DevOps space.
Featured Stock Analysis
Stock #1: Snowflake Inc. (SNOW)
| Metric | Value |
|---|---|
| Market Cap | $72.3B |
| Quality Rating | 6.3 |
| Intrinsic Value | $78.8 |
| 1Y Return | 37.6% |
| Revenue | $4,386.7M |
| Free Cash Flow | $776.7M |
| Revenue Growth | 28.5% |
| FCF margin | 17.7% |
| Gross margin | 67.1% |
| ROIC | (58.0%) |
| Total Debt to Equity | 122.0% |
Investment Thesis
Snowflake Inc. (SNOW) stands out in the DevOps ecosystem with a market cap of $72.3B and a ValueSense quality rating of 6.3. The company's intrinsic value of $78.8 suggests potential undervaluation, supported by robust revenue of $4,386.7M and free cash flow (FCF) of $776.7M. Despite a negative ROIC of 58.0%, revenue growth at 28.5% and a healthy FCF margin of 17.7% underscore operational scalability in cloud data warehousing. High gross margin of 67.1% reflects pricing power, while 1Y return of 37.6% indicates market recognition of its growth trajectory in data analytics for DevOps workflows.
This analysis positions SNOW as an educational case for value investors tracking SNOW analysis in high-growth tech, where FCF generation amid expansion signals long-term potential despite leverage concerns.
Key Catalysts
- Strong revenue growth of 28.5% driven by cloud adoption in DevOps pipelines
- FCF of $776.7M with 17.7% margin, enabling reinvestment
- Gross margin of 67.1%, highlighting competitive moat in data platforms
Risk Factors
- Elevated total debt to equity at 122.0%, increasing financial vulnerability
- Negative ROIC of 58.0%, signaling capital efficiency challenges
- High market cap exposure to broader tech volatility
Stock #2: MongoDB, Inc. (MDB)
| Metric | Value |
|---|---|
| Market Cap | $32.5B |
| Quality Rating | 6.0 |
| Intrinsic Value | $220.3 |
| 1Y Return | 63.4% |
| Revenue | $2,317.1M |
| Free Cash Flow | $358.4M |
| Revenue Growth | 20.9% |
| FCF margin | 15.5% |
| Gross margin | 71.6% |
| ROIC | (23.1%) |
| Total Debt to Equity | 1.2% |
Investment Thesis
MongoDB, Inc. (MDB), with a market cap of $32.5B and quality rating of 6.0, offers a compelling intrinsic value of $220.3 for DevOps database solutions. Key metrics include revenue of $2,317.1M, FCF of $358.4M, and revenue growth of 20.9%, paired with a gross margin of 71.6%. The 1Y return of 63.4% reflects strong momentum, though ROIC at 23.1% points to investment phase dynamics. Low total debt to equity of 1.2% bolsters balance sheet strength, making MDB a focal point in MDB analysis for NoSQL database demand in developer tools.
Key Catalysts
- Impressive 1Y return of 63.4% from expanding cloud database adoption
- Revenue growth of 20.9% with FCF margin of 15.5%
- Superior gross margin of 71.6% supporting scalability
Risk Factors
- Negative ROIC of 23.1%, indicating ongoing profitability hurdles
- Dependence on tech sector cycles for growth sustainability
- Moderate FCF relative to ambitious expansion plans
Stock #3: 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) features a market cap of $10.4B and quality rating of 5.0, with an intrinsic value of $30.5 highlighting value potential in event streaming for DevOps. Metrics show revenue of $1,113.1M, FCF of $53.5M, revenue growth of 21.6%, and gross margin of 74.1%. 1Y return of 6.6% lags peers, but improving FCF margin of 4.8% signals progress. High total debt to equity at 98.9% and ROIC of 62.7% warrant scrutiny in this CFLT analysis.
Key Catalysts
- Solid revenue growth of 21.6% in Kafka-based streaming tech
- High gross margin of 74.1% for margin expansion potential
- Emerging FCF positivity amid DevOps data flow demand
Risk Factors
- Low FCF margin of 4.8% limiting cash flexibility
- Deeply negative ROIC of 62.7% reflecting inefficiencies
- Total debt to equity of 98.9% heightens leverage risks
Stock #4: Open Text Corporation (OTEX)
| Metric | Value |
|---|---|
| Market Cap | $8,230.3M |
| Quality Rating | 6.3 |
| Intrinsic Value | $105.9 |
| 1Y Return | 13.5% |
| Revenue | $5,187.5M |
| Free Cash Flow | $905.7M |
| Revenue Growth | (7.5%) |
| FCF margin | 17.5% |
| Gross margin | 72.5% |
| ROIC | 8.2% |
| Total Debt to Equity | 7.4% |
Investment Thesis
Open Text Corporation (OTEX) boasts a market cap of $8,230.3M and top-tier quality rating of 6.3, with intrinsic value at $105.9. Standout FCF of $905.7M from revenue of $5,187.5M overshadows revenue growth dip to 7.5%, yet FCF margin of 17.5% and positive ROIC of 8.2% shine. Gross margin of 72.5% and low total debt to equity of 7.4% support stability, with 1Y return of 13.5% in OTEX analysis for enterprise info management.
Key Catalysts
- Exceptional FCF of $905.7M with 17.5% margin
- Positive ROIC of 8.2%, rare among growth peers
- Low total debt to equity of 7.4% for financial resilience
Risk Factors
- Negative revenue growth of 7.5% signaling maturation
- Smaller market cap vulnerability to acquisition rumors
- Moderate 1Y return of 13.5% vs. high-flyers
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Stock #5: Elastic N.V. (ESTC)
| Metric | Value |
|---|---|
| Market Cap | $7,752.7M |
| Quality Rating | 5.6 |
| Intrinsic Value | $98.0 |
| 1Y Return | -26.8% |
| Revenue | $1,609.3M |
| Free Cash Flow | $302.3M |
| Revenue Growth | 17.0% |
| FCF margin | 18.8% |
| Gross margin | 75.5% |
| ROIC | (24.3%) |
| Total Debt to Equity | 2.3% |
Investment Thesis
Elastic N.V. (ESTC), at market cap $7,752.7M and quality rating 5.6, presents intrinsic value of $98.0 in search and observability tools. Revenue of $1,609.3M drives FCF of $302.3M, with revenue growth 17.0% and FCF margin 18.8%. Gross margin 75.5% excels, despite ROIC 24.3% and 1Y return -26.8%. Low total debt to equity 2.3% aids in ESTC analysis for DevOps analytics.
Key Catalysts
- Strong FCF margin of 18.8% from $302.3M cash flow
- High gross margin 75.5% in elastic search demand
- Steady revenue growth 17.0% for observability expansion
Risk Factors
- Negative 1Y return of -26.8% amid market pressures
- ROIC 24.3% indicating investment drag
- Competition in crowded search analytics space
Stock #6: JFrog Ltd. (FROG)
| Metric | Value |
|---|---|
| Market Cap | $6,843.5M |
| Quality Rating | 6.6 |
| Intrinsic Value | $35.3 |
| 1Y Return | 94.0% |
| Revenue | $502.6M |
| Free Cash Flow | $140.9M |
| Revenue Growth | 22.7% |
| FCF margin | 28.0% |
| Gross margin | 75.7% |
| ROIC | (19.8%) |
| Total Debt to Equity | 1.3% |
Investment Thesis
JFrog Ltd. (FROG) leads with quality rating 6.6, market cap $6,843.5M, and intrinsic value $35.3 for DevOps artifact management. Metrics feature revenue $502.6M, FCF $140.9M, revenue growth 22.7%, and top FCF margin 28.0%. Gross margin 75.7% and 1Y return 94.0% dazzle, offset by ROIC 19.8% and low total debt to equity 1.3% in FROG analysis.
Key Catalysts
- Stellar 1Y return 94.0% from software supply chain growth
- Best-in-list FCF margin 28.0%
- Robust revenue growth 22.7% in CI/CD tools
Risk Factors
- Negative ROIC 19.8% from scaling investments
- Mid-cap size exposes to volatility
- Dependence on DevOps adoption cycles
Stock #7: GitLab Inc. (GTLB)
| Metric | Value |
|---|---|
| Market Cap | $6,005.0M |
| Quality Rating | 5.3 |
| Intrinsic Value | $41.9 |
| 1Y Return | -35.8% |
| Revenue | $906.3M |
| Free Cash Flow | $242.3M |
| Revenue Growth | 27.4% |
| FCF margin | 26.7% |
| Gross margin | 88.0% |
| ROIC | (31.5%) |
| Total Debt to Equity | 0.0% |
Investment Thesis
GitLab Inc. (GTLB) at market cap $6,005.0M and quality rating 5.3 shows intrinsic value $41.9 in all-in-one DevOps platforms. Revenue $906.3M yields FCF $242.3M, revenue growth 27.4%, FCF margin 26.7%, and elite gross margin 88.0%. ROIC 31.5% and 1Y return -35.8% contrast debt-free total debt to equity 0.0% in GTLB analysis.
Key Catalysts
- High revenue growth 27.4% and FCF margin 26.7%
- Exceptional gross margin 88.0% for profitability path
- Zero total debt to equity for clean balance sheet
Risk Factors
- Sharp 1Y return decline of -35.8%
- Negative ROIC 31.5% amid competition
- Execution risks in platform unification
Stock #8: Jamf Holding Corp. (JAMF)
| Metric | Value |
|---|---|
| Market Cap | $1,729.7M |
| Quality Rating | 5.7 |
| Intrinsic Value | $33.9 |
| 1Y Return | -7.7% |
| Revenue | $690.6M |
| Free Cash Flow | $110.2M |
| Revenue Growth | 12.3% |
| FCF margin | 16.0% |
| Gross margin | 76.8% |
| ROIC | (2.6%) |
| Total Debt to Equity | 49.8% |
Investment Thesis
Jamf Holding Corp. (JAMF), market cap $1,729.7M, quality rating 5.7, and intrinsic value $33.9 target Apple DevOps management. Revenue $690.6M supports FCF $110.2M, revenue growth 12.3%, FCF margin 16.0%, gross margin 76.8%. Near-breakeven ROIC 2.6% and 1Y return -7.7% with total debt to equity 49.8% frame JAMF analysis.
Key Catalysts
- Solid gross margin 76.8% in niche Apple ecosystem
- Positive FCF trajectory with 16.0% margin
- Steady revenue growth 12.3% for endpoint management
Risk Factors
- Mild 1Y return loss of -7.7%
- ROIC 2.6% still improving slowly
- Niche focus limits broader market upside
Stock #9: PagerDuty, Inc. (PD)
| Metric | Value |
|---|---|
| Market Cap | $1,165.0M |
| Quality Rating | 6.5 |
| Intrinsic Value | $36.6 |
| 1Y Return | -31.2% |
| Revenue | $489.2M |
| Free Cash Flow | $114.7M |
| Revenue Growth | 7.0% |
| FCF margin | 23.5% |
| Gross margin | 84.4% |
| ROIC | 54.5% |
| Total Debt to Equity | 120.4% |
Investment Thesis
PagerDuty, Inc. (PD) closes the list with market cap $1,165.0M, quality rating 6.5, and intrinsic value $36.6 for incident management. Revenue $489.2M generates FCF $114.7M, revenue growth 7.0%, FCF margin 23.5%, gross margin 84.4%. Standout ROIC 54.5% offsets 1Y return -31.2% and high total debt to equity 120.4% in PD analysis.
Key Catalysts
- Leading ROIC 54.5% for capital efficiency
- Strong FCF margin 23.5% from $114.7M
- High gross margin 84.4% in digital operations
Risk Factors
- Declining 1Y return -31.2%
- Elevated total debt to equity 120.4%
- Slower revenue growth 7.0% vs. peers
Portfolio Diversification Insights
These 9 DevOps stock picks cluster in software infrastructure, with Snowflake and MongoDB anchoring large-cap data layers (over $30B combined), mid-caps like OTEX and ESTC adding enterprise stability, and smaller caps (JAMF, PD under $2B) offering growth asymmetry. Sector allocation is 100% tech-DevOps, reducing traditional diversification but enhancing thematic purity—data platforms (SNOW, MDB, CFLT ~50% weight), developer tools (FROG, GTLB, ESTC ~30%), and operations (OTEX, JAMF, PD ~20%). Pair high-FCF names like OTEX (positive ROIC) with high-growth like FROG (94% 1Y return) for balance; low-debt leaders (GTLB 0%, MDB 1.2%) mitigate leverage risks in SNOW/PD. This stock watchlist suits concentrated tech exposure, with average quality rating ~6.0 and median intrinsic upside.
Market Timing & Entry Strategies
Consider positions during tech pullbacks or post-earnings when valuations align closer to intrinsic values, such as for SNOW ($78.8 IV) or MDB ($220.3 IV). Dollar-cost average into high-conviction names like FROG (94% 1Y return) amid DevOps adoption waves, targeting Q1 2026 catalysts like revenue beats. Monitor ROIC improvements (e.g., OTEX's 8.2%) for entry signals, avoiding over-leveraged plays (SNOW 122% D/E) in rising rate environments. Use ValueSense tools for real-time investment opportunities tracking, scaling into smaller caps like PD on operational wins.
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FAQ Section
How were these stocks selected?
These 9 best DevOps stock picks were chosen via ValueSense criteria: quality ratings ≥5.0, positive FCF, high gross margins (>67%), and intrinsic value upside, focusing on DevOps themes for stock watchlist relevance.
What's the best stock from this list?
JFrog (FROG) edges out with the highest quality rating 6.6, 94.0% 1Y return, and 28.0% FCF margin, though OTEX offers stability with positive ROIC—selection depends on risk tolerance in DevOps stock analysis.
Should I buy all these stocks or diversify?
Diversify across large (SNOW, MDB), mid (ESTC, FROG), and small caps (PD, JAMF) within this thematic group, or blend with non-tech for broader allocation; this educational stock collection supports concentrated DevOps bets.
What are the biggest risks with these picks?
Common risks include negative ROIC across most (e.g., SNOW -58.0%), high debt (PD 120.4%), and tech volatility impacting 1Y returns like GTLB's -35.8%—balance with FCF strength.
When is the best time to invest in these stocks?
Target dips aligning intrinsic values (e.g., MDB $220.3), post-earnings growth confirmations, or sector rotations into tech; use ValueSense for timing undervalued stocks in DevOps.