9 Best Devops for February 2026
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Market Overview & Selection Criteria
The technology sector, particularly DevOps and cloud-native software, continues to drive innovation amid evolving digital transformation demands. ValueSense analysis highlights 9 undervalued DevOps stocks selected based on intrinsic value estimates exceeding current market prices, solid quality ratings (5.0-6.6), strong revenue growth, positive free cash flow generation, and high gross margins typical of SaaS models. These picks emphasize companies with robust FCF margins (4.8%-28.0%) and growth rates (7.0%-28.5%), filtered from ValueSense's pre-validated data for top DevOps stock picks. Selection prioritizes balance between growth potential and financial health, focusing on firms trading below intrinsic value for potential upside in a recovering tech market.
Featured Stock Analysis
Stock #1: 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) stands out in the DevOps ecosystem with a $67.0B market cap and impressive scalability in cloud data warehousing. ValueSense rates its quality at 6.3, with an intrinsic value of $75.9 suggesting undervaluation. The company reports $4,386.7M revenue growing at 28.5%, supported by $776.7M free cash flow and a 17.7% FCF margin. High 67.1% gross margin underscores operational efficiency, though negative 58.0% ROIC reflects heavy investments in expansion. At 122.0% total debt to equity, leverage is elevated, but 7.5% 1Y return indicates stability for long-term value analysis in data platform demand.
This positions SNOW as a core holding for investors eyeing cloud data growth, where intrinsic value tools reveal margin for appreciation amid sector tailwinds.
Key Catalysts
- Strong 28.5% revenue growth fueling multi-cloud adoption
- 17.7% FCF margin enabling reinvestment in AI integrations
- 67.1% gross margin supporting pricing power in enterprise deals
Risk Factors
- Negative 58.0% ROIC from capital-intensive scaling
- High 122.0% debt to equity amplifying interest rate sensitivity
- Competition in crowded cloud data warehousing space
Stock #2: 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), with a $30.8B market cap, excels in NoSQL database solutions critical for DevOps workflows. ValueSense assigns a 6.0 quality rating and $203.4 intrinsic value, highlighting significant undervaluation. Key metrics include $2,317.1M revenue at 20.9% growth, $358.4M free cash flow, and 15.5% FCF margin. Exceptional 71.6% gross margin reflects software scalability, despite 23.1% ROIC, with low 1.2% debt to equity providing balance sheet strength. The 37.0% 1Y return demonstrates momentum in developer adoption.
MDB's analysis reveals a compelling case for database modernization trends, where high margins and low debt support sustained growth in agile environments.
Key Catalysts
- 20.9% revenue growth from Atlas cloud expansion
- 71.6% gross margin driving profitability levers
- 37.0% 1Y return signaling market validation
Risk Factors
- Negative 23.1% ROIC amid R&D spend
- Dependency on developer ecosystem shifts
- Potential margin pressure from cloud competition
Stock #3: 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) offers real-time data streaming via Kafka, with a $10.6B market cap and ValueSense 5.0 quality rating. Intrinsic value at $28.7 points to upside potential. Financials show $1,113.1M revenue growing 21.6%, $53.5M free cash flow, and 4.8% FCF margin in early profitability. Strong 74.1% gross margin aids scaling, though 62.7% ROIC and 98.9% debt to equity warrant caution. Modest 3.5% 1Y return reflects steady progress in event-driven architectures.
This stock analysis underscores CFLT's role in data infrastructure, balancing growth with emerging cash flow positivity.
Key Catalysts
- 21.6% revenue growth in streaming platforms
- 74.1% gross margin for cost efficiency
- Kafka ecosystem dominance in DevOps pipelines
Risk Factors
- Low 4.8% FCF margin indicating scaling challenges
- High 62.7% ROIC negativity from investments
- 98.9% debt exposing to economic downturns
Stock #4: Elastic N.V. (ESTC)
| Metric | Value |
|---|---|
| Market Cap | $7,171.4M |
| Quality Rating | 5.6 |
| Intrinsic Value | $96.2 |
| 1Y Return | -40.4% |
| 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), market cap $7,171.4M, powers search and analytics with a 5.6 quality rating and $96.2 intrinsic value. Revenue of $1,609.3M grows at 17.0%, with $302.3M free cash flow yielding 18.8% FCF margin. Impressive 75.5% gross margin and low 2.3% debt to equity bolster resilience, despite 24.3% ROIC and -40.4% 1Y return from market volatility.
ESTC's metrics position it for recovery in observability and security tools, key to DevOps efficiency.
Key Catalysts
- 18.8% FCF margin supporting product innovation
- 75.5% gross margin in enterprise search
- Low 2.3% debt for financial flexibility
Risk Factors
- -40.4% 1Y return amid tech selloffs
- Negative 24.3% ROIC from expansion costs
- Competition in AI-driven analytics
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Stock #5: Open Text Corporation (OTEX)
| Metric | Value |
|---|---|
| Market Cap | $6,610.0M |
| Quality Rating | 6.2 |
| Intrinsic Value | $107.1 |
| 1Y Return | -13.9% |
| 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) features a $6,610.0M market cap, 6.2 quality rating, and $107.1 intrinsic value. It generates $5,187.5M revenue (down 7.5%), but strong $905.7M free cash flow at 17.5% margin. Positive 8.2% ROIC and 72.5% gross margin shine, with manageable 7.4% debt to equity and -13.9% 1Y return.
OTEX analysis highlights mature DevOps content management stability for diversified portfolios.
Key Catalysts
- Highest $905.7M FCF for acquisitions
- Positive 8.2% ROIC indicating efficiency
- 72.5% gross margin in enterprise software
Risk Factors
- 7.5% revenue contraction signaling slowdown
- Integration risks from past deals
- -13.9% 1Y return in volatile markets
Stock #6: JFrog Ltd. (FROG)
| Metric | Value |
|---|---|
| Market Cap | $6,587.8M |
| Quality Rating | 6.6 |
| Intrinsic Value | $33.6 |
| 1Y Return | 55.0% |
| 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), $6,587.8M market cap, earns top 6.6 quality rating and $33.6 intrinsic value. $502.6M revenue grows 22.7%, with $140.9M FCF at standout 28.0% margin. 75.7% gross margin and 1.3% debt, despite 19.8% ROIC, pair with strong 55.0% 1Y return.
FROG excels in artifact management, offering high-upside DevOps analysis.
Key Catalysts
- Leading 28.0% FCF margin for scaling
- 22.7% revenue growth in CI/CD tools
- 55.0% 1Y return momentum
Risk Factors
- 19.8% ROIC from growth investments
- Smaller cap vulnerability to peers
- Execution risks in global expansion
Stock #7: GitLab Inc. (GTLB)
| Metric | Value |
|---|---|
| Market Cap | $5,851.9M |
| Quality Rating | 5.3 |
| Intrinsic Value | $41.5 |
| 1Y Return | -49.6% |
| 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), $5,851.9M market cap, has 5.3 quality and $41.5 intrinsic value. $906.3M revenue surges 27.4%, $242.3M FCF at 26.7% margin, 88.0% gross margin, debt-free 0.0%, but 31.5% ROIC and -49.6% 1Y return.
GTLB's all-in-one DevSecOps platform shows growth promise per ValueSense data.
Key Catalysts
- Exceptional 88.0% gross margin
- 27.4% revenue growth in DevOps adoption
- Zero debt to equity for agility
Risk Factors
- Sharp -49.6% 1Y return volatility
- 31.5% ROIC negativity
- Competition from incumbents
Stock #8: Jamf Holding Corp. (JAMF)
| Metric | Value |
|---|---|
| Market Cap | $1,734.3M |
| Quality Rating | 5.7 |
| Intrinsic Value | $33.9 |
| 1Y Return | -15.8% |
| 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), $1,734.3M market cap, scores 5.7 quality with $33.9 intrinsic value. $690.6M revenue at 12.3% growth, $110.2M FCF (16.0% margin), 76.8% gross margin, 2.6% ROIC, 49.8% debt, -15.8% 1Y return.
JAMF targets Apple device management, a niche DevOps strength.
Key Catalysts
- 76.8% gross margin in endpoint security
- Steady 12.3% revenue growth
- Enterprise Apple ecosystem tailwinds
Risk Factors
- Mild 2.6% ROIC drag
- 49.8% debt leverage
- -15.8% 1Y return pressures
Stock #9: PagerDuty, Inc. (PD)
| Metric | Value |
|---|---|
| Market Cap | $973.1M |
| Quality Rating | 6.4 |
| Intrinsic Value | $37.6 |
| 1Y Return | -42.5% |
| 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), smallest at $973.1M market cap, has 6.4 quality and $37.6 intrinsic value. $489.2M revenue grows 7.0%, strong $114.7M FCF (23.5% margin), 84.4% gross margin, top 54.5% ROIC, but 120.4% debt and -42.5% 1Y return.
PD's incident management shines with elite ROIC in ValueSense review.
Key Catalysts
- Highest 54.5% ROIC efficiency
- 23.5% FCF margin cash generation
- 84.4% gross margin profitability
Risk Factors
- Elevated 120.4% debt to equity
- -42.5% 1Y return decline
- Slower 7.0% growth pace
Portfolio Diversification Insights
These 9 DevOps stocks cluster in software infrastructure, offering 100% technology allocation with sub-themes in data (SNOW, MDB, CFLT), search/observability (ESTC), DevOps platforms (OTEX, FROG, GTLB), endpoint (JAMF), and incident response (PD). Larger caps like SNOW $67B and MDB $30.8B provide stability, while mid/small caps (FROG, PD) add growth. Balance high-growth/high-debt (SNOW, CFLT) with low-debt standouts (MDB, GTLB). Average quality 6.0, revenue growth 16.6%, FCF margin 18.4%—ideal for tech-focused watchlists reducing single-stock risk via complementary tools (e.g., GTLB pipelines + PD alerts).
Market Timing & Entry Strategies
Consider positions during tech sector dips, targeting intrinsic value discounts >20% (e.g., SNOW at $75.9, MDB $203.4). Monitor Q4 earnings for revenue acceleration; enter on pullbacks post-volatility (noting 1Y returns from -49.6% to 55.0%). Dollar-cost average into high-quality (6.0+) like FROG/PD for 6-12 month horizons, pairing with broader market indicators like Nasdaq rebounds. Use ValueSense for ongoing metric tracking.
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FAQ Section
How were these stocks selected?
Selected via ValueSense methodology emphasizing intrinsic value > current price, quality ratings 5.0+, positive FCF, and DevOps relevance for best DevOps stock picks.
What's the best stock from this list?
JFrog (FROG) leads with 6.6 quality, 28.0% FCF margin, and 55.0% 1Y return, though analysis favors diversification over single picks.
Should I buy all these stocks or diversify?
Diversify across the 9 for balanced DevOps stock watchlist exposure; allocate by market cap and growth profiles to mitigate sector risks.
What are the biggest risks with these picks?
Common risks include negative ROIC (avg. -20%), high debt in some (e.g., SNOW 122%), and tech volatility seen in 1Y returns (-49.6% to 55.0%).
When is the best time to invest in these stocks?
Optimal during market corrections when trading below intrinsic values; track revenue growth beats and FCF trends for top stocks to buy now entry points.