10 Best B2b Saas for February 2026
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Market Overview & Selection Criteria
The technology and SaaS sectors continue to show resilience amid market volatility, with many companies demonstrating strong revenue growth and improving free cash flow generation despite recent 1-year returns averaging negative for most picks. These 10 best stock picks were selected using ValueSense's proprietary intrinsic value methodology, focusing on undervalued stocks where current market prices appear below calculated intrinsic values, combined with quality ratings above 5.0, positive revenue growth, and robust margins like FCF and gross margins. Criteria emphasize B2B SaaS and tech firms with scalable business models, high ROIC where applicable, and diversification across sub-sectors like data storage, cloud services, and software platforms. This stock watchlist highlights opportunities for value-oriented analysis in a landscape favoring growth at reasonable valuations.
Featured Stock Analysis
Stock #1: NetApp, Inc. (NTAP)
| Metric | Value |
|---|---|
| Market Cap | $19.5B |
| Quality Rating | 6.9 |
| Intrinsic Value | $133.9 |
| 1Y Return | -21.3% |
| 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 this stock picks analysis with a Quality rating of 6.9 and an intrinsic value of $133.9, suggesting potential undervaluation for value investors. The company reports a market cap of $19.5B, revenue of $6,635.0M, and strong free cash flow of $1,598.0M, yielding a healthy FCF margin of 24.1% and gross margin of 70.3%. Despite a 1Y Return of -21.3% and modest revenue growth of 2.5%, its ROIC of 29.8% indicates efficient capital use in data management and storage solutions, positioning it well for enterprise demand in cloud-hybrid environments.
This educational analysis reveals NTAP's balanced financials, with high margins supporting sustained operations even as debt levels (Total Debt to Equity at 252.1%) warrant monitoring.
Key Catalysts
- Exceptional ROIC of 29.8% driving efficient returns on invested capital
- High gross margin 70.3% and FCF margin 24.1% signaling operational strength
- $1,598.0M free cash flow enabling reinvestment or shareholder returns
Risk Factors
- Elevated Total Debt to Equity ratio of 252.1% increasing financial leverage risks
- Low revenue growth of 2.5% potentially vulnerable to market slowdowns
- Negative 1Y Return of -21.3% reflecting recent underperformance
Stock #2: CGI Inc. (GIB)
| Metric | Value |
|---|---|
| Market Cap | $18.5B |
| Quality Rating | 7.0 |
| Intrinsic Value | $149.3 |
| 1Y Return | -27.8% |
| Revenue | CA$16.2B |
| Free Cash Flow | CA$2,258.9M |
| Revenue Growth | 8.9% |
| FCF margin | 14.0% |
| Gross margin | 20.5% |
| ROIC | 17.9% |
| Total Debt to Equity | 48.4% |
Investment Thesis
CGI Inc. (GIB) earns a solid Quality rating of 7.0 and intrinsic value of $149.3 in this investment opportunities review, with a $18.5B market cap and revenue of CA$16.2B. Free cash flow stands at CA$2,258.9M, supported by 8.9% revenue growth and a ROIC of 17.9%, though FCF margin is 14.0% and gross margin 20.5%. A 1Y Return of -27.8% contrasts with these fundamentals, highlighting potential rebound in IT consulting and managed services for government and enterprise clients.
ValueSense data underscores GIB's stability in a diversified tech services landscape, balancing growth with manageable debt (Total Debt to Equity 48.4%).
Key Catalysts
- Strong revenue growth of 8.9% in core IT services
- High free cash flow of CA$2,258.9M funding expansion
- Quality rating of 7.0 indicating reliable business quality
Risk Factors
- 1Y Return decline of -27.8% amid market pressures
- Relatively low gross margin of 20.5% compared to peers
- Currency exposure from CA$-denominated metrics
Stock #3: Toast, Inc. (TOST)
| Metric | Value |
|---|---|
| Market Cap | $18.1B |
| Quality Rating | 6.9 |
| Intrinsic Value | $75.3 |
| 1Y Return | -22.8% |
| Revenue | $5,858.0M |
| Free Cash Flow | $564.0M |
| Revenue Growth | 25.8% |
| FCF margin | 9.6% |
| Gross margin | 25.7% |
| ROIC | 55.3% |
| Total Debt to Equity | 1.8% |
Investment Thesis
Toast, Inc. (TOST), with a $18.1B market cap, boasts a Quality rating of 6.9 and intrinsic value of $75.3, making it a compelling TOST analysis pick despite a -22.8% 1Y Return. Revenue reached $5,858.0M with 25.8% growth, free cash flow at $564.0M (FCF margin 9.6%), and standout ROIC of 55.3%. Gross margin of 25.7% reflects its cloud-based restaurant management platform's scalability, low debt (Total Debt to Equity 1.8%) adds appeal for growth-focused portfolios.
This breakdown positions TOST as a high-growth contender in fintech for hospitality.
Key Catalysts
- Robust revenue growth of 25.8% in restaurant tech
- Exceptional ROIC of 55.3% highlighting capital efficiency
- Minimal debt at 1.8% Total Debt to Equity
Risk Factors
- Modest FCF margin of 9.6% indicating scaling costs
- Negative 1Y Return of -22.8% from market volatility
- Sector-specific risks in hospitality recovery
Stock #4: Nextracker Inc. (NXT)
| Metric | Value |
|---|---|
| Market Cap | $17.5B |
| Quality Rating | 7.1 |
| Intrinsic Value | $36.1 |
| 1Y Return | 131.3% |
| Revenue | $3,603.2M |
| Free Cash Flow | $589.3M |
| Revenue Growth | 30.0% |
| FCF margin | 16.4% |
| Gross margin | 32.4% |
| ROIC | 37.5% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Nextracker Inc. (NXT) leads with a top Quality rating of 7.1 and $17.5B market cap, though intrinsic value of $36.1 suggests caution despite 131.3% 1Y Return. Revenue of $3,603.2M grew 30.0%, with $589.3M free cash flow (16.4% margin), 32.4% gross margin, and 37.5% ROIC. Zero Total Debt to Equity underscores a debt-free balance sheet in solar tracking solutions, appealing for renewable energy exposure in this undervalued stocks watchlist.
NXT analysis emphasizes its outlier positive performance amid peers.
Key Catalysts
- Explosive 131.3% 1Y Return showing momentum
- 30.0% revenue growth in renewables
- Zero debt 0.0% and strong 37.5% ROIC
Risk Factors
- Intrinsic value $36.1 potentially signaling overvaluation risks
- Dependence on solar sector cyclicality
- High growth may pressure future margins
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Stock #5: Tyler Technologies, Inc. (TYL)
| Metric | Value |
|---|---|
| Market Cap | $15.9B |
| Quality Rating | 6.2 |
| Intrinsic Value | $539.9 |
| 1Y Return | -38.3% |
| 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) features a $15.9B market cap, Quality rating 6.2, and high intrinsic value of $539.9, ideal for TYL analysis in public sector software. Revenue of $2,298.3M grew 10.6%, free cash flow $618.9M (26.9% margin), gross margin 44.8%, but ROIC at 7.0% and -38.3% 1Y Return highlight recovery potential. Low Total Debt to Equity 18.7% supports long-term stability.
Key Catalysts
- Strong FCF margin of 26.9% and $618.9M cash flow
- 10.6% revenue growth in government tech
- Elevated intrinsic value $539.9 for value plays
Risk Factors
- Low ROIC of 7.0% vs. peers
- Sharp -38.3% 1Y Return
- Public sector budget dependencies
Stock #6: HubSpot, Inc. (HUBS)
| Metric | Value |
|---|---|
| Market Cap | $14.9B |
| Quality Rating | 6.1 |
| Intrinsic Value | $168.3 |
| 1Y Return | -63.7% |
| 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) has a $14.9B market cap, Quality rating 6.1, and intrinsic value $168.3, with $2,987.7M revenue up 19.2%, $655.0M free cash flow (21.9% margin), and 84.1% gross margin. Negative ROIC -6.0% and -63.7% 1Y Return reflect growth investments, balanced by low 14.7% Total Debt to Equity in marketing software.
This HUBS analysis suits inbound CRM enthusiasts.
Key Catalysts
- Impressive 84.1% gross margin
- 19.2% revenue growth trajectory
- Solid FCF margin of 21.9%
Risk Factors
- Negative ROIC -6.0% from expansion costs
- Severe -63.7% 1Y Return
- Competitive CRM landscape
Stock #7: GoDaddy Inc. (GDDY)
| Metric | Value |
|---|---|
| Market Cap | $13.6B |
| Quality Rating | 7.0 |
| Intrinsic Value | $183.0 |
| 1Y Return | -52.9% |
| 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), $13.6B market cap, scores Quality rating 7.0 and intrinsic value $183.0. Revenue $4,869.8M grew 8.8%, free cash flow $1,537.9M (31.6% margin), ROIC 19.4%, gross margin 61.5%, despite -52.9% 1Y Return and high 4,193.5% Total Debt to Equity in domain and hosting services.
GDDY analysis highlights cash generation strength.
Key Catalysts
- Top FCF margin 31.6% and $1,537.9M flow
- 7.0 Quality rating and 19.4% ROIC
- 61.5% gross margin resilience
Risk Factors
- Extreme Total Debt to Equity 4,193.5%
- -52.9% 1Y Return volatility
- Hosting market saturation
Stock #8: Confluent, Inc. (CFLT)
| Metric | Value |
|---|---|
| Market Cap | $10.6B |
| Quality Rating | 5.0 |
| Intrinsic Value | $28.7 |
| 1Y Return | 3.5% |
| 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) at $10.6B market cap has Quality rating 5.0 and intrinsic value $28.7, with $1,113.1M revenue up 21.6%, thin $53.5M free cash flow (4.8% margin), 74.1% gross margin, but negative ROIC -62.7% and modest 3.5% 1Y Return. Total Debt to Equity 98.9% in data streaming tech.
CFLT analysis for high-growth Kafka plays.
Key Catalysts
- 21.6% revenue growth potential
- High 74.1% gross margin
- Positive 3.5% 1Y Return outlier
Risk Factors
- Low Quality rating 5.0 and negative ROIC
- Weak 4.8% FCF margin
- 98.9% debt leverage
Stock #9: Procore Technologies, Inc. (PCOR)
| Metric | Value |
|---|---|
| Market Cap | $8,458.8M |
| Quality Rating | 5.9 |
| Intrinsic Value | $63.6 |
| 1Y Return | -29.5% |
| Revenue | $1,275.5M |
| Free Cash Flow | $173.3M |
| Revenue Growth | 14.9% |
| FCF margin | 13.6% |
| Gross margin | 79.8% |
| ROIC | (14.4%) |
| Total Debt to Equity | 10.3% |
Investment Thesis
Procore Technologies, Inc. (PCOR), $8,458.8M market cap, Quality rating 5.9, intrinsic value $63.6. Revenue $1,275.5M grew 14.9%, $173.3M free cash flow (13.6% margin), 79.8% gross margin, negative ROIC -14.4%, -29.5% 1Y Return, low 10.3% Total Debt to Equity in construction software.
PCOR analysis targets SaaS in infrastructure.
Key Catalysts
- 79.8% gross margin excellence
- 14.9% revenue growth
- Improving 13.6% FCF margin
Risk Factors
- Negative ROIC -14.4%
- -29.5% 1Y Return
- Construction cycle sensitivity
Stock #10: Aurora Innovation, Inc. (AUR)
| Metric | Value |
|---|---|
| Market Cap | $8,131.3M |
| Quality Rating | 5.2 |
| Intrinsic Value | $0.7 |
| 1Y Return | -38.3% |
| 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), $8,131.3M market cap, Quality rating 5.2, low intrinsic value $0.7. Minimal revenue $2,000.0K, negative free cash flow ($608.0M, -30,400.0% margin), gross margin -1,700.0%, ROIC -103.8%, -38.3% 1Y Return, 8.8% Total Debt to Equity in autonomous driving tech.
This AUR analysis examines high-risk innovator profile.
Key Catalysts
- Potential in autonomous vehicle disruption
- Early-stage growth upside if scaled
Risk Factors
- Severely negative metrics across FCF, margins, ROIC
- Tiny revenue base and high cash burn
- Low intrinsic value signaling challenges
Portfolio Diversification Insights
These top stocks to buy now cluster in tech and B2B SaaS, with heavy allocation to software (NTAP, GIB, TYL, HUBS, GDDY, PCOR ~60%), fintech/enterprise (TOST, CFLT ~20%), renewables (NXT ~10%), and autonomous tech (AUR ~10%). Complementary strengths—high margins in HUBS/PCOR pair with growth in TOST/NXT—reduce single-stock risk. Balance debt-heavy names (NTAP, GDDY) with low-debt leaders (NXT, TOST) for stability; sector focus avoids overexposure while enabling best value stocks synergy in cloud/data themes.
Market Timing & Entry Strategies
Consider positions during earnings dips or sector rotations toward tech recovery, targeting entries near intrinsic values (e.g., NTAP below $133.9). Dollar-cost average into high-quality picks like GIB/NXT for volatility; monitor ROIC improvements in growth names like TOST. Use pullbacks from negative 1Y Returns as analysis entry points, aligning with revenue acceleration signals.
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FAQ Section
How were these stocks selected?
These stock picks were chosen via ValueSense intrinsic value tools, prioritizing quality ratings 5.0+, positive revenue growth, and undervaluation relative to intrinsic estimates across tech/SaaS sectors for diversified investment ideas.
What's the best stock from this list?
Nextracker (NXT) stands out with 7.1 Quality rating, 131.3% 1Y Return, 30.0% growth, and zero debt, though all warrant individual stock analysis based on risk tolerance.
Should I buy all these stocks or diversify?
Diversification across these 10 reduces sector risk; allocate by quality/ROIC (e.g., 20% high-margin like GDDY, 30% growth like TOST) rather than equal-weighting for balanced stock watchlist exposure.
What are the biggest risks with these picks?
Key concerns include high debt (GDDY 4,193.5%, NTAP 252.1%), negative ROIC (HUBS, CFLT, AUR), and 1Y underperformance (most -20%+), plus sector volatility in tech/SaaS.
When is the best time to invest in these stocks?
Optimal timing aligns with market dips, positive earnings surprises, or intrinsic value proximity; track revenue/FCF trends quarterly for entry in this undervalued stocks to buy collection.