10 Best Data Infrastructure for February 2026
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Market Overview & Selection Criteria
The data infrastructure sector remains a cornerstone of the technology landscape, powering AI, cloud computing, and enterprise analytics amid accelerating digital transformation. Value Sense analysis highlights 10 undervalued data infrastructure stocks selected from our proprietary screening tools, focusing on companies with strong intrinsic value potential, high ROIC, robust revenue growth, and favorable FCF margins. These picks emphasize data infrastructure stock picks trading below calculated intrinsic values, curated via machine learning-driven fundamental analysis that integrates quality ratings, debt metrics, and growth trajectories. Selection prioritizes diversified market caps from mega-cap leaders like ORCL to emerging players like TDC, ideal for best value stocks in tech. This watchlist targets long-term opportunities in undervalued stocks to buy, balancing high-growth profiles with quality scores above 5.0 where possible.
Featured Stock Analysis
Stock #1: Oracle Corporation (ORCL)
| Metric | Value |
|---|---|
| Market Cap | $474.9B |
| Quality Rating | 6.1 |
| Intrinsic Value | $160.5 |
| 1Y Return | -3.4% |
| Revenue | $61.0B |
| Free Cash Flow | ($13.2B) |
| Revenue Growth | 11.1% |
| FCF margin | (21.6%) |
| Gross margin | 78.0% |
| ROIC | 13.1% |
| Total Debt to Equity | 408.4% |
Investment Thesis
Oracle Corporation (ORCL) stands out as a data infrastructure giant with a massive $474.9B market cap and Quality rating of 6.1. Despite a 1Y Return of -3.4%, its intrinsic value of $160.5 suggests significant undervaluation, supported by $61.0B revenue and 11.1% revenue growth. However, Free Cash Flow stands at $13.2B with a FCF margin of 21.6%, reflecting investment in cloud infrastructure, while gross margin of 78.0% and ROIC of 13.1% indicate operational strength. High Total Debt to Equity of 408.4% warrants caution, but Oracle's enterprise software dominance positions it for recovery in database and cloud services, making it a core holding for ORCL analysis in value portfolios.
Key Catalysts
- Strong revenue growth at 11.1% driven by cloud database demand
- High gross margin of 78.0% supporting scalability
- ROIC of 13.1% signaling efficient capital use
Risk Factors
- Negative FCF of $13.2B and 21.6% margin from heavy capex
- Elevated Total Debt to Equity at 408.4% increasing leverage risk
- Modest Quality rating of 6.1 amid competitive pressures
Stock #2: Palantir Technologies Inc. (PLTR)
| Metric | Value |
|---|---|
| Market Cap | $349.5B |
| Quality Rating | 8.1 |
| Intrinsic Value | $20.3 |
| 1Y Return | 80.5% |
| 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), with a $349.5B market cap and top-tier Quality rating of 8.1, delivers explosive 47.2% revenue growth on $3,896.2M revenue and impressive $1,794.8M Free Cash Flow (46.1% FCF margin). Its 80.8% gross margin and standout ROIC of 76.6% underscore elite efficiency, bolstered by low Total Debt to Equity of 3.5%. However, intrinsic value of $20.3 implies overvaluation relative to hype, despite a stellar 1Y Return of 80.5%. PLTR's AI-driven data platforms make it a high-conviction pick for PLTR analysis in growth-oriented stock watchlists.
Key Catalysts
- Exceptional 47.2% revenue growth from AI platform adoption
- 46.1% FCF margin and ROIC 76.6% for superior profitability
- Minimal debt at 3.5% enabling agile expansion
Risk Factors
- Intrinsic value $20.3 potentially signaling overpricing
- High market cap $349.5B vulnerable to valuation corrections
- Dependence on government/commercial contract wins
Stock #3: Snowflake Inc. (SNOW)
| Metric | Value |
|---|---|
| Market Cap | $67.0B |
| Quality Rating | 6.3 |
| Intrinsic Value | $75.9 |
| 1Y Return | 7.5% |
| 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) boasts a $67.0B market cap and Quality rating of 6.3, with 28.5% revenue growth on $4,386.7M revenue and positive $776.7M Free Cash Flow (17.7% FCF margin). Gross margin of 67.1% supports its cloud data warehousing leadership, though ROIC of 58.0% and Total Debt to Equity of 122.0% highlight scaling costs. Intrinsic value of $75.9 positions it as undervalued amid a 7.5% 1Y Return, ideal for SNOW analysis in data cloud investment opportunities.
Key Catalysts
- Robust 28.5% revenue growth in data cloud services
- Improving 17.7% FCF margin from operational leverage
- 67.1% gross margin for sustained profitability
Risk Factors
- Negative ROIC 58.0% indicating capital inefficiency
- Debt to Equity 122.0% amid growth investments
- Competition in crowded cloud data market
Stock #4: Datadog, Inc. (DDOG)
| Metric | Value |
|---|---|
| Market Cap | $44.6B |
| Quality Rating | 7.0 |
| Intrinsic Value | $43.4 |
| 1Y Return | -9.3% |
| Revenue | $3,211.7M |
| Free Cash Flow | $939.8M |
| Revenue Growth | 26.6% |
| FCF margin | 29.3% |
| Gross margin | 79.9% |
| ROIC | (4.4%) |
| Total Debt to Equity | 37.2% |
Investment Thesis
Datadog, Inc. (DDOG) features a $44.6B market cap and solid Quality rating of 7.0, driven by 26.6% revenue growth on $3,211.7M revenue and strong $939.8M Free Cash Flow (29.3% FCF margin). 79.9% gross margin shines, but ROIC of 4.4% reflects investments, with low Total Debt to Equity of 37.2%. Intrinsic value of $43.4 suggests undervaluation despite -9.3% 1Y Return, positioning DDOG as a monitoring leader for DDOG analysis.
Key Catalysts
- 26.6% revenue growth from observability demand
- High 29.3% FCF margin and 79.9% gross margin
- Manageable 37.2% debt for balanced growth
Risk Factors
- Negative ROIC 4.4% from expansion spending
- Recent -9.3% 1Y Return amid market volatility
- Intense competition in cloud monitoring
Stock #5: MongoDB, Inc. (MDB)
| Metric | Value |
|---|---|
| Market Cap | $30.8B |
| Quality Rating | 6.0 |
| Intrinsic Value | $203.4 |
| 1Y Return | 37.0% |
| 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) holds a $30.8B market cap with Quality rating of 6.0, fueled by 20.9% revenue growth on $2,317.1M revenue and $358.4M Free Cash Flow (15.5% FCF margin). 71.6% gross margin aids its NoSQL database edge, despite ROIC of 23.1% and minimal Total Debt to Equity of 1.2%. Intrinsic value of $203.4 indicates deep undervaluation versus 37.0% 1Y Return, a standout for MDB analysis in best value stocks.
Key Catalysts
- 20.9% revenue growth in modern database adoption
- Intrinsic value $203.4 for significant upside
- Low 1.2% debt supporting flexibility
Risk Factors
- Negative ROIC 23.1% due to R&D intensity
- Quality rating 6.0 in competitive NoSQL space
- Volatility from growth stock dynamics
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Stock #6: Dynatrace, Inc. (DT)
| Metric | Value |
|---|---|
| Market Cap | $11.6B |
| Quality Rating | 6.9 |
| Intrinsic Value | $31.8 |
| 1Y Return | -34.1% |
| Revenue | $1,852.5M |
| Free Cash Flow | $476.1M |
| Revenue Growth | 18.5% |
| FCF margin | 25.7% |
| Gross margin | 81.5% |
| ROIC | 25.0% |
| Total Debt to Equity | 3.1% |
Investment Thesis
Dynatrace, Inc. (DT) offers a $11.6B market cap and Quality rating of 6.9, with 18.5% revenue growth on $1,852.5M revenue and robust $476.1M Free Cash Flow (25.7% FCF margin). Excellent 81.5% gross margin and ROIC of 25.0% highlight strength, backed by low Total Debt to Equity of 3.1%. Intrinsic value of $31.8 points to value amid -34.1% 1Y Return, key for DT analysis.
Key Catalysts
- 25.7% FCF margin and ROIC 25.0% for efficiency
- 18.5% revenue growth in observability
- Negligible 3.1% debt
Risk Factors
- -34.1% 1Y Return from market pressures
- Smaller market cap increases volatility
- Dependence on enterprise renewals
Stock #7: Nutanix, Inc. (NTNX)
| Metric | Value |
|---|---|
| Market Cap | $10.7B |
| Quality Rating | 7.1 |
| Intrinsic Value | $84.6 |
| 1Y Return | -42.2% |
| Revenue | $2,617.5M |
| Free Cash Flow | $772.8M |
| Revenue Growth | 17.4% |
| FCF margin | 29.5% |
| Gross margin | 87.0% |
| ROIC | 24.5% |
| Total Debt to Equity | (221.4%) |
Investment Thesis
Nutanix, Inc. (NTNX) has a $10.7B market cap and high Quality rating of 7.1, showing 17.4% revenue growth on $2,617.5M revenue and $772.8M Free Cash Flow (29.5% FCF margin). Top 87.0% gross margin and ROIC of 24.5% impress, despite negative Total Debt to Equity of 221.4%. Intrinsic value of $84.6 undervalues it versus -42.2% 1Y Return, strong for NTNX analysis.
Key Catalysts
- 29.5% FCF margin and 87.0% gross margin
- ROIC 24.5% in hyperconverged infrastructure
- 17.4% revenue growth trajectory
Risk Factors
- Negative debt 221.4% from cash position
- Sharp -42.2% 1Y Return
- Transition risks in hybrid cloud
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) carries a $10.6B market cap and Quality rating of 5.0, with 21.6% revenue growth on $1,113.1M revenue and modest $53.5M Free Cash Flow (4.8% FCF margin). 74.1% gross margin supports Kafka streaming, but ROIC of 62.7% and Total Debt to Equity of 98.9% flag issues. Intrinsic value of $28.7 offers value near 3.5% 1Y Return for CFLT analysis.
Key Catalysts
- 21.6% revenue growth in real-time data
- Improving 4.8% FCF margin
- Strategic Kafka ecosystem
Risk Factors
- Low Quality rating 5.0 and ROIC 62.7%
- 98.9% debt exposure
- Early-stage profitability
Stock #9: Commvault Systems, Inc. (CVLT)
| Metric | Value |
|---|---|
| Market Cap | $3,760.5M |
| Quality Rating | 6.8 |
| Intrinsic Value | $78.5 |
| 1Y Return | -45.7% |
| Revenue | $1,147.0M |
| Free Cash Flow | $181.5M |
| Revenue Growth | 21.5% |
| FCF margin | 15.8% |
| Gross margin | 81.4% |
| ROIC | 12.8% |
| Total Debt to Equity | 438.5% |
Investment Thesis
Commvault Systems, Inc. (CVLT) features a $3,760.5M market cap and Quality rating of 6.8, with 21.5% revenue growth on $1,147.0M revenue and $181.5M Free Cash Flow (15.8% FCF margin). 81.4% gross margin and ROIC of 12.8% are solid, though Total Debt to Equity of 438.5% is high. Intrinsic value of $78.5 undervalues amid -45.7% 1Y Return, relevant for CVLT analysis.
Key Catalysts
- 21.5% revenue growth in data protection
- 15.8% FCF margin and ROIC 12.8%
- High 81.4% gross margin
Risk Factors
- High 438.5% debt leverage
- -45.7% 1Y Return
- Backup market saturation
Stock #10: Teradata Corporation (TDC)
| Metric | Value |
|---|---|
| Market Cap | $2,714.8M |
| Quality Rating | 6.0 |
| Intrinsic Value | $76.4 |
| 1Y Return | -12.0% |
| Revenue | $1,651.0M |
| Free Cash Flow | $305.0M |
| Revenue Growth | (8.2%) |
| FCF margin | 18.5% |
| Gross margin | 59.0% |
| ROIC | 18.9% |
| Total Debt to Equity | 261.6% |
Investment Thesis
Teradata Corporation (TDC), with $2,714.8M market cap and Quality rating of 6.0, shows $305.0M Free Cash Flow (18.5% FCF margin) on $1,651.0M revenue, despite 8.2% revenue growth. ROIC of 18.9% and 59.0% gross margin provide stability, with Total Debt to Equity of 261.6%. Intrinsic value of $76.4 signals upside versus -12.0% 1Y Return for TDC analysis.
Key Catalysts
- 18.5% FCF margin and ROIC 18.9%
- Analytics platform demand
- Path to revenue stabilization
Risk Factors
- Declining 8.2% revenue growth
- 261.6% debt burden
- Legacy system transitions
Portfolio Diversification Insights
These 10 data infrastructure stocks create a balanced portfolio spanning mega-caps (ORCL, PLTR at $349B+), mid-caps (SNOW, DDOG), and small-caps (CVLT, TDC under $4B), reducing concentration risk. Sector allocation is 100% tech-focused on data management, analytics, and cloud, with high ROIC leaders like PLTR 76.6% complementing undervalued plays like MDB ($203.4 intrinsic). Pair high-growth (PLTR 47.2% revenue) with stable cash generators (NTNX 29.5% FCF margin) for synergy; negative ROIC names (SNOW, CFLT) add growth beta while low-debt profiles (PLTR, DT) hedge leverage-heavy ones (ORCL, CVLT). This mix targets portfolio diversification across sub-themes like databases (ORCL, MDB), observability (DDOG, DT), and storage (NTNX, CVLT), enhancing resilience in stock watchlist strategies.
Market Timing & Entry Strategies
Consider entry during sector pullbacks, such as post-earnings dips or when intrinsic value discounts exceed 20% (e.g., MDB, NTNX). Monitor revenue growth above 15% and improving FCF margins for confirmation; ladder positions across high-quality (PLTR 8.1 rating) and undervalued (ORCL $160.5 intrinsic) names. Use Value Sense screeners for ROIC >15% thresholds and backtest against macro trends like AI data boom. Scale in on volatility, prioritizing low-debt stocks (DT 3.1%) during rate uncertainty, for optimal market timing in these investment ideas.
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FAQ Section
How were these stocks selected?
These 10 best data infrastructure stock picks were chosen using Value Sense's machine learning tools, prioritizing intrinsic value upside, Quality ratings above 5.0, revenue growth, and ROIC efficiency from the provided dataset.
What's the best stock from this list?
Palantir (PLTR) leads with an 8.1 Quality rating, 76.6% ROIC, and 47.2% revenue growth, though MDB offers the highest intrinsic value discount at $203.4 for value-focused analysis.
Should I buy all these stocks or diversify?
Diversify across market caps and sub-themes (e.g., PLTR for growth, ORCL for stability) to mitigate risks like high debt in ORCL/CVLT, leveraging the portfolio's complementary FCF and ROIC profiles.
What are the biggest risks with these picks?
Key concerns include high debt levels (ORCL 408.4%, CVLT 438.5%), negative ROIC in growth names (SNOW -58.0%), and revenue declines (TDC -8.2%), alongside sector volatility.
When is the best time to invest in these stocks?
Target entries when prices approach intrinsic values (e.g., NTNX $84.6), during AI-driven rallies, or after dips improving FCF margins, using Value Sense backtesting for timing validation.