10 Best Health Data Analytics for February 2026
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Market Overview & Selection Criteria
The healthcare sector, particularly health data analytics, continues to show resilience amid broader market volatility, driven by increasing demand for AI-powered diagnostics, precision medicine, and data-driven patient outcomes. ValueSense analysis highlights companies with strong intrinsic value potential, focusing on metrics like Quality rating, Intrinsic value, revenue growth, and free cash flow generation. These 10 best health data analytics stock picks were selected using ValueSense's proprietary methodology, prioritizing firms with market caps from $1.1B to $13.9B, favorable undervalued stocks profiles where intrinsic value suggests upside, and exposure to high-growth areas like genomics and clinical trials. Selection emphasizes balanced quality ratings (4.9-7.0), ROIC efficiency, and sector-specific tailwinds such as regulatory approvals for AI tools and expanding telehealth integration, making them ideal for a diversified stock watchlist.
Featured Stock Analysis
Stock #1: ICON Public Limited Company (ICLR)
| Metric | Value |
|---|---|
| Market Cap | $13.9B |
| Quality Rating | 6.1 |
| Intrinsic Value | $352.3 |
| 1Y Return | -10.6% |
| Revenue | $8,102.6M |
| Free Cash Flow | $995.8M |
| Revenue Growth | (2.5%) |
| FCF margin | 12.3% |
| Gross margin | 26.9% |
| ROIC | 8.6% |
| Total Debt to Equity | 7.0% |
Investment Thesis
ICON Public Limited Company (ICLR) stands out in the health data analytics space with a robust Market Cap of $13.9B and a Quality rating of 6.1, indicating solid operational fundamentals. Its Intrinsic value of $352.3 points to significant undervaluation potential for long-term investors analyzing clinical research services. Despite a 1Y Return of -10.6%, the company generates impressive Revenue of $8,102.6M and Free Cash Flow of $995.8M, supported by a healthy FCF margin of 12.3% and Gross margin of 26.9%. ROIC at 8.6% reflects efficient capital use, while low Total Debt to Equity of 7.0% minimizes balance sheet risks, positioning ICLR as a stable player in contract research organization (CRO) services enhanced by data analytics.
This analysis reveals ICLR's strength in leveraging health data for faster drug trials, appealing to those seeking healthcare stock picks with proven cash flow resilience even amid slight Revenue growth contraction of 2.5%.
Key Catalysts
- Strong free cash flow generation at $995.8M supports reinvestment in AI-driven trial analytics.
- Low debt levels 7.0% enable acquisitions in precision medicine data platforms.
- Efficient ROIC 8.6% signals potential for margin expansion as biotech demand rises.
Risk Factors
- Negative revenue growth -2.5% could persist if clinical trial volumes slow.
- Recent 1Y underperformance -10.6% amid sector headwinds.
- Moderate gross margins 26.9% vulnerable to cost inflation in research services.
Stock #2: Solventum Corporation (SOLV)
| Metric | Value |
|---|---|
| Market Cap | $13.2B |
| Quality Rating | 5.7 |
| Intrinsic Value | $136.3 |
| 1Y Return | 2.2% |
| Revenue | $8,402.0M |
| Free Cash Flow | $50.0M |
| Revenue Growth | 1.5% |
| FCF margin | 0.6% |
| Gross margin | 54.1% |
| ROIC | 20.0% |
| Total Debt to Equity | 103.0% |
Investment Thesis
Solventum Corporation (SOLV), with a Market Cap of $13.2B and Quality rating of 5.7, offers a compelling case in health data analytics through its medtech portfolio. The Intrinsic value of $136.3 suggests undervaluation, complemented by a modest 1Y Return of 2.2%. Key metrics include Revenue of $8,402.0M, though Free Cash Flow is lower at $50.0M with a slim FCF margin of 0.6%. High Gross margin of 54.1% and top-tier ROIC of 20.0% highlight profitability in data-informed medical devices, despite elevated Total Debt to Equity at 103.0% and tepid Revenue growth of 1.5%. This positions SOLV as an educational example of high-margin potential in analytics-driven healthcare products.
Key Catalysts
- Exceptional ROIC 20.0% from efficient data analytics in wound care and purification tech.
- Strong gross margins 54.1% provide buffer for debt management.
- Steady revenue base $8.4B supports scaling analytics platforms.
Risk Factors
- High debt-to-equity 103.0% increases refinancing risks in rising rates.
- Weak FCF margin 0.6% limits flexibility for growth investments.
- Slow revenue growth 1.5% may lag high-growth peers.
Stock #3: Revvity, Inc. (RVTY)
| Metric | Value |
|---|---|
| Market Cap | $12.7B |
| Quality Rating | 5.8 |
| Intrinsic Value | $138.6 |
| 1Y Return | -14.2% |
| Revenue | $2,813.4M |
| Free Cash Flow | $497.5M |
| Revenue Growth | 3.4% |
| FCF margin | 17.7% |
| Gross margin | 50.5% |
| ROIC | 3.2% |
| Total Debt to Equity | 47.8% |
Investment Thesis
Revvity, Inc. (RVTY) features a Market Cap of $12.7B and Quality rating of 5.8, focusing on life sciences tools with data analytics integration. Intrinsic value at $138.6 indicates upside, though 1Y Return sits at -14.2%. It boasts Revenue of $2,813.4M, Free Cash Flow of $497.5M (FCF margin 17.7%), and Gross margin of 50.5%. Revenue growth of 3.4% is steady, but ROIC of 3.2% and Total Debt to Equity of 47.8% suggest room for efficiency gains. This makes RVTY a balanced pick for undervalued stocks to buy in diagnostics and analytics.
Key Catalysts
- Solid FCF $497.5M funds R&D in AI-enhanced lab analytics.
- Attractive gross margins 50.5% support competitive positioning.
- Moderate revenue growth 3.4% aligns with stable life sciences demand.
Risk Factors
- Low ROIC 3.2% indicates capital inefficiency.
- Elevated debt 47.8% amid recent underperformance (-14.2% 1Y).
- Slower growth compared to pure-play AI health firms.
Stock #4: Tempus AI, Inc. (TEM)
| Metric | Value |
|---|---|
| Market Cap | $10.6B |
| Quality Rating | 5.6 |
| Intrinsic Value | $37.8 |
| 1Y Return | 4.6% |
| Revenue | $1,105.3M |
| Free Cash Flow | ($63.5M) |
| Revenue Growth | 72.6% |
| FCF margin | (5.7%) |
| Gross margin | 64.0% |
| ROIC | (16.8%) |
| Total Debt to Equity | 160.9% |
Investment Thesis
Tempus AI, Inc. (TEM) has a Market Cap of $10.6B and Quality rating of 5.6, emphasizing AI-driven oncology data analytics. Intrinsic value of $37.8 highlights value potential, with 1Y Return at 4.6%. Revenue reached $1,105.3M with explosive Revenue growth of 72.6%, but Free Cash Flow is negative at $63.5M (FCF margin -5.7%). Strong Gross margin 64.0% contrasts with ROIC of 16.8% and high Total Debt to Equity of 160.9%, portraying a high-growth, high-risk profile in healthcare stock picks.
Key Catalysts
- Hyper revenue growth 72.6% from AI precision medicine expansion.
- High gross margins 64.0% signal scalability in data platforms.
- Positive 1Y return 4.6% amid AI hype.
Risk Factors
- Negative FCF -$63.5M and ROIC -16.8% strain liquidity.
- Very high debt 160.9% amplifies volatility.
- Growth sustainability unproven at current scale.
Stock #5: Caris Life Sciences, Inc. (CAI)
| Metric | Value |
|---|---|
| Market Cap | $6,921.5M |
| Quality Rating | 5.6 |
| Intrinsic Value | $26.7 |
| 1Y Return | -17.3% |
| Revenue | $619.2M |
| Free Cash Flow | ($38.3M) |
| Revenue Growth | 77.9% |
| FCF margin | (6.2%) |
| Gross margin | 33.6% |
| ROIC | 53.2% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Caris Life Sciences, Inc. (CAI), at Market Cap $6,921.5M and Quality rating 5.6, specializes in molecular profiling analytics. Intrinsic value $26.7 suggests undervaluation, with 1Y Return -17.3%. Revenue $619.2M grew 77.9%, but Free Cash Flow $38.3M (FCF margin -6.2%) and Gross margin 33.6% show investment phase. Exceptional ROIC 53.2% and zero Total Debt to Equity 0.0% provide a clean balance sheet for investment opportunities in AI diagnostics.
Key Catalysts
- Stellar revenue surge 77.9% in precision oncology data.
- Outstanding ROIC 53.2% reflects high returns on assets.
- Debt-free status 0.0% enables aggressive expansion.
Risk Factors
- Negative FCF -$38.3M due to growth spending.
- Low gross margins 33.6% versus peers.
- Sharp 1Y decline -17.3% signals market skepticism.
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Stock #6: Privia Health Group, Inc. (PRVA)
| Metric | Value |
|---|---|
| Market Cap | $2,801.6M |
| Quality Rating | 6.3 |
| Intrinsic Value | $62.1 |
| 1Y Return | 3.1% |
| Revenue | $2,042.6M |
| Free Cash Flow | $110.7M |
| Revenue Growth | 19.0% |
| FCF margin | 5.4% |
| Gross margin | 6.9% |
| ROIC | 2.4% |
| Total Debt to Equity | 0.8% |
Investment Thesis
Privia Health Group, Inc. (PRVA) offers a Market Cap of $2,801.6M and top Quality rating 6.3 in value-based care analytics. Intrinsic value $62.1 indicates upside, with 1Y Return 3.1%. Revenue $2,042.6M grew 19.0%, generating Free Cash Flow $110.7M (FCF margin 5.4%). Low Gross margin 6.9%, ROIC 2.4%, and Total Debt to Equity 0.8% suit stock picks focused on scalable physician platforms.
Key Catalysts
- Healthy revenue growth 19.0% in cloud-based health data.
- Positive FCF $110.7M supports platform enhancements.
- Minimal debt 0.8% for financial flexibility.
Risk Factors
- Thin gross margins 6.9% pressure profitability.
- Low ROIC 2.4% needs improvement.
- Moderate scale limits bargaining power.
Stock #7: GeneDx Holdings Corp. (WGS)
| Metric | Value |
|---|---|
| Market Cap | $2,796.8M |
| Quality Rating | 7.0 |
| Intrinsic Value | $75.0 |
| 1Y Return | 23.6% |
| Revenue | $402.2M |
| Free Cash Flow | $15.5M |
| Revenue Growth | 50.5% |
| FCF margin | 3.8% |
| Gross margin | 69.6% |
| ROIC | 3.0% |
| Total Debt to Equity | 21.1% |
Investment Thesis
GeneDx Holdings Corp. (WGS) has Market Cap $2,796.8M, highest Quality rating 7.0, and Intrinsic value $75.0. Strong 1Y Return 23.6% underscores momentum, with Revenue $402.2M up 50.5%, Free Cash Flow $15.5M (FCF margin 3.8%), Gross margin 69.6%, ROIC 3.0%, and Total Debt to Equity 21.1%. Ideal for best value stocks in genomics analytics.
Key Catalysts
- Robust revenue growth 50.5% and top 1Y return 23.6%.
- High gross margins 69.6% from genetic testing efficiency.
- Elite quality rating 7.0 signals strong fundamentals.
Risk Factors
- Modest FCF $15.5M relative to growth ambitions.
- Moderate debt 21.1% requires monitoring.
- Early-stage ROIC 3.0% in competitive genomics.
Stock #8: Hinge Health, Inc. (HNGE)
| Metric | Value |
|---|---|
| Market Cap | $2,723.1M |
| Quality Rating | 5.9 |
| Intrinsic Value | $55.0 |
| 1Y Return | -7.1% |
| Revenue | $534.4M |
| Free Cash Flow | $103.8M |
| Revenue Growth | 50.7% |
| FCF margin | 19.4% |
| Gross margin | 78.6% |
| ROIC | (319.8%) |
| Total Debt to Equity | 2.2% |
Investment Thesis
Hinge Health, Inc. (HNGE) at Market Cap $2,723.1M and Quality rating 5.9 targets musculoskeletal digital therapeutics with data analytics. Intrinsic value $55.0, 1Y Return -7.1%, Revenue $534.4M up 50.7%, Free Cash Flow $103.8M (FCF margin 19.4%), top Gross margin 78.6%, but negative ROIC 319.8% and low Total Debt to Equity 2.2%. A growth-oriented healthcare stock pick.
Key Catalysts
- Explosive revenue growth 50.7% in digital health analytics.
- Excellent FCF margin 19.4% and gross margins 78.6%.
- Low debt 2.2% aids scaling.
Risk Factors
- Severely negative ROIC -319.8% flags inefficiencies.
- Recent 1Y loss -7.1%.
- High growth may strain operations.
Stock #9: Certara, Inc. (CERT)
| Metric | Value |
|---|---|
| Market Cap | $1,439.6M |
| Quality Rating | 7.0 |
| Intrinsic Value | $7.6 |
| 1Y Return | -37.2% |
| Revenue | $415.6M |
| Free Cash Flow | $110.3M |
| Revenue Growth | 11.5% |
| FCF margin | 26.5% |
| Gross margin | 58.0% |
| ROIC | 1.5% |
| Total Debt to Equity | 1.1% |
Investment Thesis
Certara, Inc. (CERT), Market Cap $1,439.6M, Quality rating 7.0, Intrinsic value $7.6, 1Y Return -37.2%. Revenue $415.6M grew 11.5%, Free Cash Flow $110.3M (FCF margin 26.5%), Gross margin 58.0%, ROIC 1.5%, Total Debt to Equity 1.1%. Strong cash generation in biosimulation analytics for undervalued stocks.
Key Catalysts
- High FCF margin 26.5% from software analytics.
- Top quality rating 7.0 and low debt 1.1%.
- Steady revenue growth 11.5%.
Risk Factors
- Poor 1Y return -37.2% reflects market pressures.
- Low ROIC 1.5% limits returns.
- Lower intrinsic value relative to peers.
Stock #10: Clover Health Investments, Corp. (CLOV)
| Metric | Value |
|---|---|
| Market Cap | $1,144.3M |
| Quality Rating | 4.9 |
| Intrinsic Value | $1.9 |
| 1Y Return | -49.4% |
| Revenue | $1,773.6M |
| Free Cash Flow | ($86.4M) |
| Revenue Growth | 14.8% |
| FCF margin | (4.9%) |
| Gross margin | 21.2% |
| ROIC | (101.1%) |
| Total Debt to Equity | 0.0% |
Investment Thesis
Clover Health Investments, Corp. (CLOV) rounds out the list with Market Cap $1,144.3M, Quality rating 4.9, Intrinsic value $1.9, and steep 1Y Return -49.4%. Revenue $1,773.6M up 14.8%, but Free Cash Flow $86.4M (FCF margin -4.9%), Gross margin 21.2%, negative ROIC 101.1%, zero Total Debt to Equity. High-risk Medicare Advantage analytics play.
Key Catalysts
- Revenue growth 14.8% in AI-driven insurance data.
- No debt 0.0% offers clean slate.
- Large revenue base $1.77B for turnaround potential.
Risk Factors
- Severe 1Y decline -49.4% and negative FCF/ROIC.
- Low quality rating 4.9 and intrinsic value.
- Negative margins signal operational challenges.
Portfolio Diversification Insights
These 10 health data analytics stocks create a diversified stock watchlist spanning clinical trials (ICLR), medtech (SOLV), diagnostics (RVTY, CAI), AI oncology (TEM), value-based care (PRVA), genomics (WGS), digital therapeutics (HNGE), biosimulation (CERT), and insurance tech (CLOV). Sector allocation leans heavily toward healthcare analytics 100%, with market cap weighting favoring larger caps like ICLR/SOLV (25%+ combined) for stability and smaller high-growers like WGS/HNGE for upside. Complementary themes—revenue hypergrowth in TEM/CAI/WGS (50-78%) balances steady cash cows like ICLR/RVTY—reduce correlation risks. Quality ratings average ~6.0, with debt-light firms (CAI, PRVA, CLOV) offsetting leveraged ones (SOLV, TEM), ideal for portfolio diversification in best value stocks.
Market Timing & Entry Strategies
Consider entry during sector pullbacks, such as post-earnings dips in high-growth names like TEM or WGS, where intrinsic value gaps widen. Monitor catalysts like AI regulatory nods for TEM/CAI or FCF inflection in CLOV. Dollar-cost average into quality leaders (WGS, CERT at 7.0 rating) over 3-6 months, targeting 10-20% portfolio allocation. Use ValueSense ratings for rebalancing—favor ROIC improvers (SOLV at 20%) amid rate cuts. Position sizing: 2-5% per stock, scaling on revenue beats (e.g., >50% growers).
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FAQ Section
How were these stocks selected?
These 10 best stock picks were chosen via ValueSense methodology, emphasizing Quality rating, Intrinsic value upside, revenue growth, and health data analytics exposure for diversified investment ideas.
What's the best stock from this list?
GeneDx (WGS) and Certara (CERT) top the list with Quality rating 7.0, strong growth (50.5%, 11.5%), and positive FCF, though analysis favors WGS for its 23.6% 1Y return.
Should I buy all these stocks or diversify?
Diversify across the watchlist for balance—mix stable large-caps (ICLR, SOLV) with growers (TEM, CAI)—to mitigate risks like negative FCF in smaller names.
What are the biggest risks with these picks?
Key risks include high debt (SOLV 103%, TEM 160.9%), negative FCF/ROIC (CLOV, HNGE), and 1Y underperformance (CERT -37.2%, CLOV -49.4%), common in growth-oriented healthcare analytics.
When is the best time to invest in these stocks?
Optimal timing aligns with sector catalysts like AI advancements or earnings beats; monitor intrinsic value gaps and enter on dips for high-upside plays like WGS or PRVA.