10 Best Lead Generation for February 2026
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Market Overview & Selection Criteria
The lead generation sector within digital services shows resilience amid market volatility, with companies leveraging online platforms for customer acquisition in reviews, legal services, insurance, and deals. Value Sense selected these 10 best stock picks using proprietary intrinsic value calculations, quality ratings above 5.7, strong free cash flow generation, and high gross margins indicating operational efficiency. Methodology emphasizes undervalued stocks trading below estimated intrinsic values, positive ROIC where applicable, and revenue growth potential, drawn exclusively from Value Sense automated fundamental analysis for long-term value opportunities[1][3][6].
Featured Stock Analysis
Stock #1: Yelp Inc. (YELP)
| Metric | Value |
|---|---|
| Market Cap | $1,749.6M |
| Quality Rating | 7.0 |
| Intrinsic Value | $61.7 |
| 1Y Return | -32.4% |
| Revenue | $1,466.9M |
| Free Cash Flow | $311.4M |
| Revenue Growth | 5.3% |
| FCF margin | 21.2% |
| Gross margin | 90.5% |
| ROIC | 28.6% |
| Total Debt to Equity | 3.7% |
Investment Thesis
Yelp Inc. stands out in the lead generation space with a Quality rating of 7.0, the highest in this watchlist, supported by robust financials including $1,466.9M in revenue and $311.4M free cash flow. Its intrinsic value of $61.7 suggests significant undervaluation relative to market price, bolstered by a stellar 90.5% gross margin and 28.6% ROIC, indicating efficient capital use in its review platform business. Despite a -32.4% 1Y return, steady 5.3% revenue growth and 21.2% FCF margin highlight sustainable cash generation with minimal 3.7% total debt to equity, positioning YELP as a core holding for value-focused portfolios analyzing digital local services.
This analysis reveals YELP's strength in high-margin operations, making it a compelling case study for investors screening best value stocks in tech-enabled lead gen.
Key Catalysts
- Exceptional 90.5% gross margin driving profitability in competitive markets
- 28.6% ROIC demonstrating superior returns on invested capital
- Strong $311.4M free cash flow enabling reinvestment or shareholder returns
- Low 3.7% debt-to-equity supporting financial stability
Risk Factors
- Recent -32.4% 1Y return amid broader market pressures on consumer discretionary spending
- Moderate 5.3% revenue growth may lag high-growth peers
Stock #2: LegalZoom.com, Inc. (LZ)
| Metric | Value |
|---|---|
| Market Cap | $1,610.0M |
| Quality Rating | 6.8 |
| Intrinsic Value | $5.9 |
| 1Y Return | -2.9% |
| Revenue | $727.5M |
| Free Cash Flow | $155.8M |
| Revenue Growth | 7.2% |
| FCF margin | 21.4% |
| Gross margin | 65.7% |
| ROIC | 7.5% |
| Total Debt to Equity | 7.3% |
Investment Thesis
LegalZoom.com, Inc. offers accessible legal services through its platform, earning a solid 6.8 Quality rating with $727.5M revenue and $155.8M free cash flow. The intrinsic value at $5.9 points to undervaluation, complemented by 21.4% FCF margin and 7.2% revenue growth, though ROIC of 7.5% reflects steady operations. Low 7.3% total debt to equity enhances balance sheet strength, while a mild -2.9% 1Y return suggests stability in the online legal lead generation niche, ideal for diversified stock watchlists.
Key Catalysts
- Healthy 21.4% FCF margin indicating cash efficiency
- 7.2% revenue growth in a recurring services model
- 65.7% gross margin supporting scalability
- Minimal debt at 7.3% to equity
Risk Factors
- Lower ROIC of 7.5% compared to top performers
- -2.9% 1Y return signaling short-term stagnation
Stock #3: Ziff Davis, Inc. (ZD)
| Metric | Value |
|---|---|
| Market Cap | $1,560.2M |
| Quality Rating | 5.9 |
| Intrinsic Value | $171.5 |
| 1Y Return | -29.2% |
| Revenue | $1,457.4M |
| Free Cash Flow | $261.2M |
| Revenue Growth | 5.7% |
| FCF margin | 17.9% |
| Gross margin | 61.2% |
| ROIC | 6.1% |
| Total Debt to Equity | 48.1% |
Investment Thesis
Ziff Davis, Inc. operates digital media and lead gen properties with $1,457.4M revenue and $261.2M free cash flow, holding a 5.9 Quality rating. Its intrinsic value of $171.5 indicates substantial upside, driven by 17.9% FCF margin despite a -29.2% 1Y return. Gross margin of 61.2% and 5.7% revenue growth provide a foundation, though higher 48.1% debt-to-equity warrants monitoring; this makes ZD a higher-risk, higher-reward pick in investment opportunities for media-focused leads.
Key Catalysts
- High $261.2M free cash flow for operational flexibility
- 61.2% gross margin in content-driven leads
- 5.7% revenue growth amid digital shifts
- Attractive $171.5 intrinsic value
Risk Factors
- Elevated 48.1% total debt to equity
- -29.2% 1Y return reflecting sector headwinds
Stock #4: EverQuote, Inc. (EVER)
| Metric | Value |
|---|---|
| Market Cap | $808.2M |
| Quality Rating | 6.9 |
| Intrinsic Value | $86.2 |
| 1Y Return | 9.1% |
| Revenue | $644.7M |
| Free Cash Flow | $87.5M |
| Revenue Growth | 57.8% |
| FCF margin | 13.6% |
| Gross margin | 96.8% |
| ROIC | 301.4% |
| Total Debt to Equity | 0.5% |
Investment Thesis
EverQuote, Inc. excels in insurance lead generation, boasting a 6.9 Quality rating, $644.7M revenue, and explosive 57.8% revenue growth. With $87.5M free cash flow, 96.8% gross margin, and standout 301.4% ROIC, its intrinsic value of $86.2 highlights deep undervaluation. A positive 9.1% 1Y return and negligible 0.5% debt-to-equity position EVER as a growth standout among undervalued stocks to buy in high-ROIC plays.
Key Catalysts
- 57.8% revenue growth signaling strong demand
- Exceptional 301.4% ROIC and 96.8% gross margin
- Positive 9.1% 1Y return with low debt
Risk Factors
- Lower 13.6% FCF margin relative to peers
- Smaller $808.2M market cap increases volatility
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Stock #5: QuinStreet, Inc. (QNST)
| Metric | Value |
|---|---|
| Market Cap | $760.0M |
| Quality Rating | 6.1 |
| Intrinsic Value | $9.2 |
| 1Y Return | -45.6% |
| Revenue | $1,100.3M |
| Free Cash Flow | $113.1M |
| Revenue Growth | 43.1% |
| FCF margin | 10.3% |
| Gross margin | 9.9% |
| ROIC | 4.5% |
| Total Debt to Equity | 2.8% |
Investment Thesis
QuinStreet, Inc. delivers performance marketing leads with $1,100.3M revenue and 43.1% growth, earning a 6.1 Quality rating. Intrinsic value of $9.2 suggests undervaluation, supported by $113.1M free cash flow despite a low 9.9% gross margin and 4.5% ROIC. The -45.6% 1Y return and 2.8% debt level offer entry points for stock picks tolerant of growth volatility in affiliate leads.
Key Catalysts
- Robust 43.1% revenue growth trajectory
- $113.1M free cash flow generation
- Low 2.8% debt-to-equity
Risk Factors
- Weak 9.9% gross margin pressuring scalability
- Sharp -45.6% 1Y return and low 4.5% ROIC
Stock #6: Ibotta, Inc. (IBTA)
| Metric | Value |
|---|---|
| Market Cap | $613.9M |
| Quality Rating | 6.0 |
| Intrinsic Value | $72.5 |
| 1Y Return | -72.3% |
| Revenue | $352.2M |
| Free Cash Flow | $74.1M |
| Revenue Growth | (4.4%) |
| FCF margin | 21.0% |
| Gross margin | 81.5% |
| ROIC | 35.0% |
| Total Debt to Equity | 7.7% |
Investment Thesis
Ibotta, Inc. focuses on cashback lead gen with a 6.0 Quality rating, $352.2M revenue, and $74.1M free cash flow at 21.0% margin. Intrinsic value of $72.5 indicates upside despite -72.3% 1Y return and -4.4% revenue growth; 81.5% gross margin and 35.0% ROIC provide quality, with 7.7% debt, fitting best value stocks in rewards platforms.
Key Catalysts
- High 81.5% gross margin and 35.0% ROIC
- Solid 21.0% FCF margin
Risk Factors
- -72.3% 1Y return and -4.4% revenue contraction
- Smaller scale at $613.9M market cap
Stock #7: Angi Inc. (ANGI)
| Metric | Value |
|---|---|
| Market Cap | $590.2M |
| Quality Rating | 6.2 |
| Intrinsic Value | $82.7 |
| 1Y Return | 605.4% |
| Revenue | $1,057.6M |
| Free Cash Flow | $61.2M |
| Revenue Growth | (13.1%) |
| FCF margin | 5.8% |
| Gross margin | 94.8% |
| ROIC | 6.8% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Angi Inc. connects home service leads with $1,057.6M revenue, 6.2 Quality rating, and remarkable 605.4% 1Y return. Intrinsic value $82.7 signals potential, with zero debt and 94.8% gross margin offsetting -13.1% revenue growth and 5.8% FCF margin; 6.8% ROIC suits recovery plays in lead generation stock picks.
Key Catalysts
- Explosive 605.4% 1Y return momentum
- 94.8% gross margin and 0.0% debt
- $590.2M market cap for growth upside
Risk Factors
- Declining -13.1% revenue growth
- Thin 5.8% FCF margin
Stock #8: Groupon, Inc. (GRPN)
| Metric | Value |
|---|---|
| Market Cap | $583.0M |
| Quality Rating | 5.7 |
| Intrinsic Value | $54.9 |
| 1Y Return | 34.8% |
| Revenue | $496.1M |
| Free Cash Flow | $59.5M |
| Revenue Growth | (0.8%) |
| FCF margin | 12.0% |
| Gross margin | 90.9% |
| ROIC | (9.9%) |
| Total Debt to Equity | (585.1%) |
Investment Thesis
Groupon, Inc. persists in deals lead gen with 5.7 Quality rating, $496.1M revenue, and 34.8% 1Y return. Intrinsic value $54.9 points to value, with 90.9% gross margin and 12.0% FCF margin despite -0.8% revenue growth and negative -9.9% ROIC; extreme -585.1% debt-to-equity flags caution in this turnaround candidate for investment ideas.
Key Catalysts
- 34.8% 1Y return recovery
- Strong 90.9% gross margin
Risk Factors
- Negative -9.9% ROIC
- Severe -585.1% debt-to-equity imbalance
Stock #9: MediaAlpha, Inc. (MAX)
| Metric | Value |
|---|---|
| Market Cap | $573.8M |
| Quality Rating | 6.2 |
| Intrinsic Value | $37.5 |
| 1Y Return | -11.1% |
| Revenue | $1,123.1M |
| Free Cash Flow | $87.2M |
| Revenue Growth | 64.9% |
| FCF margin | 7.8% |
| Gross margin | 15.2% |
| ROIC | 66.1% |
| Total Debt to Equity | (33.4%) |
Investment Thesis
MediaAlpha, Inc. powers insurance leads with 6.2 Quality rating, $1,123.1M revenue, and 64.9% growth. Intrinsic value $37.5 suggests undervaluation, with $87.2M free cash flow, 66.1% ROIC, despite 15.2% gross margin and -11.1% 1Y return; -33.4% debt-to-equity adds leverage in high-growth stock watchlist entries.
Key Catalysts
- Impressive 64.9% revenue growth
- 66.1% ROIC efficiency
- Largest revenue at $1,123.1M
Risk Factors
- Low 15.2% gross margin
- -11.1% 1Y return volatility
Stock #10: Jiayin Group Inc. (JFIN)
| Metric | Value |
|---|---|
| Market Cap | $336.1M |
| Quality Rating | 6.7 |
| Intrinsic Value | $67.8 |
| 1Y Return | -18.9% |
| Revenue | CN¥6,536.5M |
| Free Cash Flow | CN¥0.0 |
| Revenue Growth | 9.0% |
| FCF margin | 0.0% |
| Gross margin | 80.9% |
| ROIC | 28.3% |
| Total Debt to Equity | 0.8% |
Investment Thesis
Jiayin Group Inc. provides fintech leads in China with 6.7 Quality rating, CN¥6,536.5M revenue, and 9.0% growth. Intrinsic value $67.8 indicates opportunity despite CN¥0.0 free cash flow and 0.0% FCF margin; 80.9% gross margin, 28.3% ROIC, and low 0.8% debt suit international undervalued stocks analysis.
Key Catalysts
- 28.3% ROIC and 80.9% gross margin
- 9.0% revenue growth in Asia
Risk Factors
- Zero free cash flow generation
- -18.9% 1Y return and currency exposure
Portfolio Diversification Insights
These 10 best stocks cluster in digital lead generation across reviews (YELP), legal (LZ), media (ZD, MAX), insurance (EVER), marketing (QNST, GRPN), home services (ANGI), rewards (IBTA), and fintech (JFIN), providing sector allocation balance within tech/services at ~80% focus. High-ROIC leaders like EVER 301.4% complement stable cash generators like YELP ($311.4M FCF), reducing correlation risks; average quality rating ~6.35 supports diversified stock watchlist with low average debt (excluding outliers) for resilience.
Market Timing & Entry Strategies
Consider positions during sector dips, targeting entries when prices approach intrinsic values (e.g., YELP near $61.7, EVER under $86.2). Monitor revenue growth leaders like MAX 64.9% for momentum, using Value Sense screeners for ROIC >20% thresholds; scale in over 3-6 months for volatility like ANGI's swings, aligning with macroeconomic stability in digital ads[1][3].
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!
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FAQ Section
How were these stocks selected?
Selected via Value Sense criteria: quality ratings >5.7, strong FCF/intrinsic value gaps, high margins/ROIC, focusing on lead gen for best value stocks[1][6].
What's the best stock from this list?
YELP leads with 7.0 quality rating, top FCF $311.4M, and 28.6% ROIC, though EVER's 301.4% ROIC suits growth; assess per risk tolerance[3].
Should I buy all these stocks or diversify?
Diversify across the 10 for balanced exposure to lead gen subsectors, avoiding concentration in volatile growth names like QNST or ANGI.
What are the biggest risks with these picks?
Key risks include negative 1Y returns (e.g., IBTA -72.3%), debt issues (GRPN -585.1%), low margins (QNST 9.9%), and growth slowdowns.
When is the best time to invest in these stocks?
Optimal during price pullbacks to intrinsic levels or sector rotations into digital services; use backtesting for timing via Value Sense tools[4].