10 Best Healthcare Software for February 2026
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Market Overview & Selection Criteria
In the current market environment, technology and healthcare sectors show mixed performance with technology giants maintaining dominance amid steady revenue growth, while healthcare firms demonstrate resilience through high margins and ROIC despite varying 1Y returns. ValueSense selected these 10 best stock picks using intrinsic value assessments, prioritizing companies where intrinsic value suggests potential undervaluation relative to market dynamics, combined with quality ratings above 5.0, positive revenue growth trajectories, and strong free cash flow generation. Methodology focuses on ValueSense quality ratings, ROIC efficiency, FCF margins, and debt levels to identify undervalued stocks to buy across software, diagnostics, and services subsectors, ensuring a balanced watchlist for educational analysis.
Featured Stock Analysis
Stock #1: Amazon.com, Inc. (AMZN)
| Metric | Value |
|---|---|
| Market Cap | $2,571.2B |
| Quality Rating | 6.1 |
| Intrinsic Value | $164.8 |
| 1Y Return | 2.0% |
| Revenue | $691.3B |
| Free Cash Flow | $10.6B |
| Revenue Growth | 11.5% |
| FCF margin | 1.5% |
| Gross margin | 50.5% |
| ROIC | 15.4% |
| Total Debt to Equity | 36.6% |
Investment Thesis
Amazon.com, Inc. (AMZN) stands out in this stock watchlist with a massive Market Cap of $2,571.2B, driven by Revenue of $691.3B and Free Cash Flow of $10.6B. Despite a modest 1Y Return of 2.0%, the company's Revenue growth of 11.5% and Gross margin of 50.5% highlight its e-commerce and cloud dominance. ValueSense Quality rating of 6.1 and Intrinsic value of $164.8 point to potential value, supported by ROIC at 15.4% and manageable Total Debt to Equity of 36.6%, though FCF margin at 1.5% reflects heavy reinvestment.
This analysis reveals AMZN's scale as a foundation for long-term growth in technology, making it a key pick for diversified investment opportunities in large-cap tech.
Key Catalysts
- Strong Revenue growth of 11.5% fueling AWS expansion
- High Gross margin (50.5%) from cloud services profitability
- Robust ROIC (15.4%) indicating efficient capital use
Risk Factors
- Low FCF margin (1.5%) due to capex intensity
- Elevated Market Cap exposes to macroeconomic slowdowns
- Moderate Total Debt to Equity (36.6%) in competitive retail
Stock #2: ServiceNow, Inc. (NOW)
| Metric | Value |
|---|---|
| Market Cap | $121.4B |
| Quality Rating | 7.2 |
| Intrinsic Value | $63.0 |
| 1Y Return | -42.2% |
| Revenue | $13.3B |
| Free Cash Flow | $4,576.0M |
| Revenue Growth | 20.9% |
| FCF margin | 34.5% |
| Gross margin | 77.5% |
| ROIC | 15.6% |
| Total Debt to Equity | 24.7% |
Investment Thesis
ServiceNow, Inc. (NOW), with a Market Cap of $121.4B, delivers enterprise software solutions boasting Revenue of $13.3B and Free Cash Flow of $4,576.0M. Revenue growth of 20.9% and exceptional Gross margin of 77.5% underscore its SaaS strength, despite a 1Y Return of -42.2%. ValueSense Quality rating of 7.2 and Intrinsic value of $63.0 suggest undervaluation, bolstered by FCF margin of 34.5%, ROIC of 15.6%, and low Total Debt to Equity of 24.7%.
This positions NOW as a high-quality healthcare software adjacent play in IT service management, ideal for stock picks targeting recurring revenue models.
Key Catalysts
- Rapid Revenue growth (20.9%) from workflow automation demand
- Superior FCF margin (34.5%) and Gross margin (77.5%)
- Solid ROIC (15.6%) for scalable SaaS expansion
Risk Factors
- Negative 1Y Return (-42.2%) signals valuation reset risks
- High growth expectations could pressure margins
- Competition in enterprise software space
Stock #3: IDEXX Laboratories, Inc. (IDXX)
| Metric | Value |
|---|---|
| Market Cap | $54.0B |
| Quality Rating | 7.3 |
| Intrinsic Value | $240.6 |
| 1Y Return | 58.1% |
| Revenue | $4,167.4M |
| Free Cash Flow | $953.6M |
| Revenue Growth | 8.4% |
| FCF margin | 22.9% |
| Gross margin | 61.7% |
| ROIC | 47.8% |
| Total Debt to Equity | 25.3% |
Investment Thesis
IDEXX Laboratories, Inc. (IDXX) features a Market Cap of $54.0B, with Revenue of $4,167.4M and Free Cash Flow of $953.6M. Strong 1Y Return of 58.1% pairs with Revenue growth of 8.4%, FCF margin of 22.9%, and standout ROIC of 47.8%. ValueSense Quality rating of 7.3 and Intrinsic value of $240.6 indicate value in veterinary diagnostics, supported by Gross margin of 61.7% and Total Debt to Equity of 25.3%.
IDXX exemplifies best value stocks in animal health, offering stability in the healthcare sector for this investment ideas collection.
Key Catalysts
- Exceptional ROIC (47.8%) from diagnostic leadership
- Strong 1Y Return (58.1%) momentum
- Healthy Gross margin (61.7%) and FCF margin (22.9%)
Risk Factors
- Moderate Revenue growth (8.4%) vulnerable to vet market cycles
- Sector-specific regulatory changes
- Debt levels (25.3%) in growth investments
Stock #4: IQVIA Holdings Inc. (IQV)
| Metric | Value |
|---|---|
| Market Cap | $39.2B |
| Quality Rating | 6.5 |
| Intrinsic Value | $343.3 |
| 1Y Return | 14.1% |
| Revenue | $15.9B |
| Free Cash Flow | $2,640.0M |
| Revenue Growth | 3.5% |
| FCF margin | 16.6% |
| Gross margin | 33.8% |
| ROIC | 8.1% |
| Total Debt to Equity | 38.1% |
Investment Thesis
IQVIA Holdings Inc. (IQV) holds a Market Cap of $39.2B, generating Revenue of $15.9B and Free Cash Flow of $2,640.0M. 1Y Return of 14.1% aligns with Revenue growth of 3.5%, FCF margin of 16.6%, and Gross margin of 33.8%. With ValueSense Quality rating of 6.5 and Intrinsic value of $343.3, plus ROIC of 8.1% and Total Debt to Equity of 38.1%, it offers clinical research depth.
This makes IQV a steady stock picks option in healthcare analytics for diversified portfolios.
Key Catalysts
- Scale via Revenue ($15.9B) in pharma services
- Positive 1Y Return (14.1%) and FCF strength
- Intrinsic value ($343.3) upside potential
Risk Factors
- Slow Revenue growth (3.5%) from industry headwinds
- Lower ROIC (8.1%) vs. peers
- Higher Total Debt to Equity (38.1%)
Stock #5: Roper Technologies, Inc. (ROP)
| Metric | Value |
|---|---|
| Market Cap | $38.9B |
| Quality Rating | 6.0 |
| Intrinsic Value | $515.6 |
| 1Y Return | -34.9% |
| Revenue | $7,902.5M |
| Free Cash Flow | $1,764.7M |
| Revenue Growth | 12.3% |
| FCF margin | 22.3% |
| Gross margin | 69.2% |
| ROIC | 5.7% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Roper Technologies, Inc. (ROP) has a Market Cap of $38.9B, with Revenue of $7,902.5M and Free Cash Flow of $1,764.7M. Despite 1Y Return of -34.9%, Revenue growth of 12.3%, FCF margin of 22.3%, and Gross margin of 69.2% shine. ValueSense Quality rating of 6.0, Intrinsic value of $515.6, low Total Debt to Equity of 0.0%, and ROIC of 5.7% highlight acquisition-driven value.
ROP fits undervalued stocks to buy in industrials-software hybrids.
Key Catalysts
- Debt-free balance sheet (0.0%) enables M&A
- Solid Revenue growth (12.3%) and margins
- High Intrinsic value ($515.6)
Risk Factors
- Weak 1Y Return (-34.9%) post-acquisitions
- Lower ROIC (5.7%) integration risks
- Dependence on deal flow
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Stock #6: Veeva Systems Inc. (VEEV)
| Metric | Value |
|---|---|
| Market Cap | $33.9B |
| Quality Rating | 7.5 |
| Intrinsic Value | $138.6 |
| 1Y Return | -14.0% |
| Revenue | $3,080.2M |
| Free Cash Flow | $1,361.0M |
| Revenue Growth | 16.0% |
| FCF margin | 44.2% |
| Gross margin | 75.7% |
| ROIC | 59.7% |
| Total Debt to Equity | 2.4% |
Investment Thesis
Veeva Systems Inc. (VEEV), Market Cap $33.9B, reports Revenue of $3,080.2M and Free Cash Flow of $1,361.0M. Revenue growth of 16.0%, FCF margin of 44.2%, Gross margin of 75.7%, and top ROIC of 59.7% offset 1Y Return of -14.0%. ValueSense Quality rating of 7.5 and Intrinsic value of $138.6, with minimal Total Debt to Equity (2.4%), signal life sciences cloud strength.
A prime healthcare stock picks for cloud compliance tools.
Key Catalysts
- Elite ROIC (59.7%) and FCF margin (44.2%)
- Strong Revenue growth (16.0%) in pharma tech
- Low debt (2.4%) for stability
Risk Factors
- Recent 1Y Return decline (-14.0%)
- Niche market concentration risks
- Competition in cloud CRM
Stock #7: 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), Market Cap $13.9B, has Revenue of $8,102.6M and Free Cash Flow of $995.8M. Revenue growth of 2.5% and 1Y Return of -10.6% contrast with FCF margin 12.3%, Gross margin 26.9%, ROIC 8.6%, and low Total Debt to Equity 7.0%. ValueSense Quality rating 6.1 and Intrinsic value $352.3 suggest clinical trial recovery potential.
ICLR adds CRO depth to this stock watchlist.
Key Catalysts
- Improving Intrinsic value ($352.3)
- Steady FCF generation
- Low debt (7.0%) flexibility
Risk Factors
- Negative Revenue growth (-2.5%)
- 1Y Return weakness (-10.6%)
- Clinical trial pipeline volatility
Stock #8: Fresenius Medical Care AG & Co. KGaA (FMS)
| Metric | Value |
|---|---|
| Market Cap | $13.2B |
| Quality Rating | 5.1 |
| Intrinsic Value | $79.6 |
| 1Y Return | -9.0% |
| Revenue | €19.6B |
| Free Cash Flow | €2,230.7M |
| Revenue Growth | 2.1% |
| FCF margin | 11.4% |
| Gross margin | 25.0% |
| ROIC | 4.7% |
| Total Debt to Equity | 75.3% |
Investment Thesis
Fresenius Medical Care AG & Co. KGaA (FMS), Market Cap $13.2B, shows Revenue €19.6B and Free Cash Flow €2,230.7M. Revenue growth 2.1%, FCF margin 11.4%, Gross margin 25.0%, and ROIC 4.7% accompany 1Y Return -9.0%. ValueSense Quality rating 5.1 and Intrinsic value $79.6, despite high Total Debt to Equity 75.3%, position it in dialysis services.
FMS provides international healthcare exposure.
Key Catalysts
- Large-scale Revenue (€19.6B) in renal care
- FCF strength (€2,230.7M)
- Steady growth (2.1%)
Risk Factors
- Lowest Quality rating (5.1)
- High debt (75.3%) burden
- Margin pressures (25.0% gross)
Stock #9: Crane Company (CR)
| Metric | Value |
|---|---|
| Market Cap | $10.5B |
| Quality Rating | 6.3 |
| Intrinsic Value | $115.5 |
| 1Y Return | 6.6% |
| Revenue | $2,305.0M |
| Free Cash Flow | $147.6M |
| Revenue Growth | 8.2% |
| FCF margin | 6.4% |
| Gross margin | 42.2% |
| ROIC | 20.8% |
| Total Debt to Equity | 55.6% |
Investment Thesis
Crane Company (CR), Market Cap $10.5B, generates Revenue $2,305.0M and Free Cash Flow $147.6M. 1Y Return 6.6%, Revenue growth 8.2%, FCF margin 6.4%, Gross margin 42.2%, and ROIC 20.8% support ValueSense Quality rating 6.3 and Intrinsic value $115.5. Total Debt to Equity 55.6% is balanced by industrials resilience.
CR diversifies into engineered products.
Key Catalysts
- Positive 1Y Return (6.6%) and ROIC (20.8%)
- Consistent Revenue growth (8.2%)
- Intrinsic value opportunity ($115.5)
Risk Factors
- Lower FCF margin (6.4%)
- Debt exposure (55.6%)
- Cyclical industrials demand
Stock #10: Doximity, Inc. (DOCS)
| Metric | Value |
|---|---|
| Market Cap | $7,567.2M |
| Quality Rating | 8.3 |
| Intrinsic Value | $25.0 |
| 1Y Return | -36.5% |
| Revenue | $621.3M |
| Free Cash Flow | $318.2M |
| Revenue Growth | 20.2% |
| FCF margin | 51.2% |
| Gross margin | 90.2% |
| ROIC | 80.3% |
| Total Debt to Equity | 1.0% |
Investment Thesis
Doximity, Inc. (DOCS), Market Cap $7,567.2M, boasts Revenue $621.3M and Free Cash Flow $318.2M. Exceptional Quality rating 8.3, FCF margin 51.2%, Gross margin 90.2%, and ROIC 80.3% shine despite 1Y Return -36.5% and Revenue growth 20.2%. Intrinsic value $25.0 and minimal Total Debt to Equity 1.0% highlight physician platform potential.
DOCS tops quality in telehealth software.
Key Catalysts
- Highest Quality rating (8.3) and ROIC (80.3%)
- Sky-high Gross margin (90.2%)
- Robust Revenue growth (20.2%)
Risk Factors
- Sharp 1Y Return drop (-36.5%)
- Smaller scale limits diversification
- Platform adoption risks
Portfolio Diversification Insights
These 10 best stocks blend technology (AMZN, NOW) with heavy healthcare weighting (IDXX, IQV, VEEV, ICLR, FMS, DOCS) and industrials (ROP, CR), allocating ~70% to healthcare software/services for margin resilience (avg. Gross margin ~55%) and 30% to broader tech/industrials for growth. High-ROIC leaders like VEEV (59.7%) and DOCS (80.3%) complement scale players like AMZN, reducing sector risk while targeting intrinsic value upside. Cross-references show software synergy (NOW/VEEV/DOCS) and services stability (IQV/ICLR/FMS), ideal for sector stock picks balancing quality (avg. 6.5) and debt control.
Market Timing & Entry Strategies
Consider positions during sector rotations favoring healthcare amid tech volatility, targeting dips where prices approach Intrinsic value thresholds (e.g., VEEV at $138.6, ROP at $515.6). Scale in on Revenue growth confirmations >10% quarterly, monitoring ROIC stability and FCF trends. Use dollar-cost averaging for high-quality names like DOCS (8.3 rating) during negative 1Y Returns, pairing with stop-losses on debt-heavy picks (FMS 75.3%). Educational framing emphasizes tracking ValueSense metrics for entry aligned with undervaluation signals.
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FAQ Section
How were these stocks selected?
These 10 best stock picks were chosen via ValueSense methodology emphasizing Quality ratings (5.1-8.3), Intrinsic value potential, ROIC, and FCF margins, focusing on undervalued growth across tech and healthcare for balanced investment opportunities.
What's the best stock from this list?
Doximity (DOCS) leads with the highest Quality rating (8.3), ROIC (80.3%), and Gross margin (90.2%), making it a standout for healthcare software analysis in this watchlist.
Should I buy all these stocks or diversify?
Diversification across sectors like these (tech 20%, healthcare 70%, industrials 10%) mitigates risks; educational analysis suggests allocating based on Intrinsic value and personal risk tolerance rather than full basket exposure.
What are the biggest risks with these picks?
Key concerns include negative 1Y Returns (e.g., NOW -42.2%, DOCS -36.5%), high debt (FMS 75.3%), and growth slowdowns (ICLR -2.5%), alongside sector-specific cycles in healthcare and tech.
When is the best time to invest in these stocks?
Optimal timing aligns with price proximity to Intrinsic value (e.g., IQV $343.3), positive Revenue growth quarters, and market dips, using ValueSense data for ongoing stock analysis.