6 Best Revenue Cycle Management for February 2026
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Market Overview & Selection Criteria
The healthcare sector, particularly revenue cycle management (RCM), presents compelling opportunities for value investors amid ongoing digital transformation and demand for efficient billing solutions. Value Sense's analysis highlights stocks with strong intrinsic value potential, focusing on companies generating positive free cash flow, solid ROIC, and margins that signal operational efficiency. These 6 best RCM stock picks were selected using Value Sense's machine learning-driven screener, prioritizing undervalued stocks where intrinsic value significantly exceeds implied market pricing, quality ratings above 5.0, and exposure to healthcare revenue optimization. This methodology scans thousands of stocks for fundamental strength, backtested against historical performance, ensuring a diversified watchlist of top stocks to buy now in the RCM space.
Featured Stock Analysis
Stock #1: Tenet Healthcare Corporation (THC)
| Metric | Value |
|---|---|
| Market Cap | $16.6B |
| Quality Rating | 5.8 |
| Intrinsic Value | $414.5 |
| 1Y Return | 32.2% |
| Revenue | $20.9B |
| Free Cash Flow | $1,502.0M |
| Revenue Growth | (0.6%) |
| FCF margin | 7.2% |
| Gross margin | 66.0% |
| ROIC | 15.9% |
| Total Debt to Equity | 1.0% |
Investment Thesis
Tenet Healthcare Corporation (THC) stands out in the Value Sense analysis with a robust Market Cap of $16.6B, delivering a strong 1Y Return of 32.2% and Revenue of $20.9B. Despite a slight Revenue growth dip to 0.6%, the company maintains impressive efficiency metrics, including a Gross margin of 66.0%, FCF margin of 7.2%, and ROIC of 15.9%, supported by Free Cash Flow of $1,502.0M. The Quality rating of 5.8 underscores solid fundamentals, while the Intrinsic value of $414.5 suggests substantial undervaluation, making THC a prime candidate for investors analyzing healthcare providers with scalable operations. Low Total Debt to Equity at 1.0% further bolsters balance sheet strength in a capital-intensive sector.
Key Catalysts
- Exceptional gross margins at 66.0% drive profitability in hospital services.
- High ROIC of 15.9% indicates efficient capital allocation.
- Massive revenue base of $20.9B provides stability amid sector volatility.
- Strong FCF generation of $1,502.0M supports reinvestment and dividends.
Risk Factors
- Negative revenue growth of 0.6% signals potential demand softness.
- Healthcare policy changes could impact reimbursements.
- Sector cyclicality tied to patient volumes and economic conditions.
Stock #2: 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), with a Market Cap of $10.5B, earns a Quality rating of 6.3 and shows positive momentum via 8.2% Revenue growth on $2,305.0M in revenue. Free Cash Flow stands at $147.6M with a 6.4% FCF margin, complemented by a 42.2% Gross margin and standout ROIC of 20.8%. The Intrinsic value of $115.5 positions CR as undervalued, appealing for analysis in industrial applications intersecting healthcare payments. While 1Y Return is modest at 6.6%, manageable Total Debt to Equity of 55.6% supports growth in diversified operations, aligning with Value Sense's focus on high-ROIC compounders.
Key Catalysts
- Leading ROIC at 20.8% reflects superior returns on invested capital.
- Revenue growth of 8.2% outperforms peers in core segments.
- Steady FCF of $147.6M enables acquisitions and shareholder returns.
- Diversified revenue streams enhance resilience.
Risk Factors
- Moderate debt levels at 55.6% require monitoring in rising rate environments.
- Slower 1Y return of 6.6% amid broader market pressures.
- Exposure to industrial cycles beyond pure RCM.
Stock #3: Waystar Holding Corp. (WAY)
| Metric | Value |
|---|---|
| Market Cap | $4,585.0M |
| Quality Rating | 6.8 |
| Intrinsic Value | $41.3 |
| 1Y Return | -36.1% |
| Revenue | $1,039.8M |
| Free Cash Flow | $284.5M |
| Revenue Growth | 14.8% |
| FCF margin | 27.4% |
| Gross margin | 67.8% |
| ROIC | 4.5% |
| Total Debt to Equity | 1.3% |
Investment Thesis
Waystar Holding Corp. (WAY) features a Market Cap of $4,585.0M and top-tier Quality rating of 6.8, driven by 14.8% Revenue growth on $1,039.8M revenue. Exceptional FCF margin of 27.4% yields $284.5M in Free Cash Flow, paired with 67.8% Gross margin, though ROIC is 4.5%. Intrinsic value at $41.3 indicates undervaluation despite a -36.1% 1Y Return, positioning WAY for recovery in RCM software. Minimal Total Debt to Equity of 1.3% offers flexibility for scaling cloud-based solutions.
Key Catalysts
- Robust revenue growth of 14.8% fuels expansion in digital RCM.
- High FCF margin of 27.4% signals cash generation prowess.
- Strong gross margins at 67.8% reflect pricing power.
- Low debt enables tech investments.
Risk Factors
- Sharp 1Y return decline of -36.1% highlights volatility.
- Lower ROIC of 4.5% suggests capital efficiency challenges.
- Competitive SaaS landscape pressures margins.
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Stock #4: Claritev Corporation (CTEV)
| Metric | Value |
|---|---|
| Market Cap | $452.4M |
| Quality Rating | 5.1 |
| Intrinsic Value | $82.9 |
| 1Y Return | -7.0% |
| Revenue | $951.0M |
| Free Cash Flow | ($112.5M) |
| Revenue Growth | 0.9% |
| FCF margin | (11.8%) |
| Gross margin | 43.7% |
| ROIC | 1.7% |
| Total Debt to Equity | (4,499.9%) |
Investment Thesis
Claritev Corporation (CTEV), at $452.4M Market Cap, holds a Quality rating of 5.1 with Intrinsic value of $82.9, pointing to deep undervaluation. Revenue of $951.0M grew 0.9%, but faces headwinds with $112.5M Free Cash Flow and 11.8% FCF margin, offset by 43.7% Gross margin and ROIC of 1.7%. 1Y Return of -7.0% and extreme Total Debt to Equity of 4,499.9% warrant scrutiny, yet Value Sense data frames CTEV as a turnaround play in analytics-driven RCM.
Key Catalysts
- High intrinsic value of $82.9 vs. market pricing offers upside.
- Solid gross margin of 43.7% supports core operations.
- Revenue stability at $951.0M in niche markets.
- Potential FCF inflection from cost controls.
Risk Factors
- Negative FCF of $112.5M strains liquidity.
- Anomalous debt-to-equity ratio risks dilution.
- Low ROIC of 1.7% indicates poor returns.
Stock #5: TruBridge, Inc. (TBRG)
| Metric | Value |
|---|---|
| Market Cap | $276.8M |
| Quality Rating | 5.7 |
| Intrinsic Value | $78.5 |
| 1Y Return | -21.3% |
| Revenue | $349.9M |
| Free Cash Flow | $2,190.3K |
| Revenue Growth | 3.6% |
| FCF margin | 0.6% |
| Gross margin | 53.2% |
| ROIC | 12.8% |
| Total Debt to Equity | 2.5% |
Investment Thesis
TruBridge, Inc. (TBRG) boasts a $276.8M Market Cap and Quality rating of 5.7, with Intrinsic value at $78.5 signaling value. Revenue of $349.9M advanced 3.6%, generating $2,190.3K Free Cash Flow at 0.6% FCF margin, alongside 53.2% Gross margin and strong ROIC of 12.8%. Despite -21.3% 1Y Return, low Total Debt to Equity of 2.5% positions TBRG favorably for RCM services growth.
Key Catalysts
- Attractive ROIC of 12.8% for capital efficiency.
- Revenue growth of 3.6% in steady healthcare IT.
- Healthy gross margins at 53.2%.
- Minimal debt aids flexibility.
Risk Factors
- Weak FCF margin of 0.6% limits scale.
- Negative 1Y return of -21.3% reflects pressures.
- Smaller cap exposes to acquisition risks.
Stock #6: CareCloud, Inc. (CCLD)
| Metric | Value |
|---|---|
| Market Cap | $114.4M |
| Quality Rating | 6.9 |
| Intrinsic Value | $20.8 |
| 1Y Return | -27.2% |
| Revenue | $114.3M |
| Free Cash Flow | $23.0M |
| Revenue Growth | 3.0% |
| FCF margin | 20.1% |
| Gross margin | 43.7% |
| ROIC | 18.1% |
| Total Debt to Equity | 16.7% |
Investment Thesis
CareCloud, Inc. (CCLD) features a $114.4M Market Cap, highest Quality rating of 6.9, and Intrinsic value of $20.8. Revenue of $114.3M grew 3.0%, with $23.0M Free Cash Flow at 20.1% FCF margin, 43.7% Gross margin, and ROIC of 18.1%. -27.2% 1Y Return contrasts strong metrics, with Total Debt to Equity at 16.7%, making CCLD a high-quality small-cap RCM contender.
Key Catalysts
- Top ROIC at 18.1% drives superior returns.
- Strong FCF margin of 20.1% on $23.0M cash flow.
- Highest quality rating of 6.9 validates fundamentals.
- Revenue growth supports practice management expansion.
Risk Factors
- Significant 1Y decline of -27.2% indicates volatility.
- Small cap heightens market sensitivity.
- Competitive RCM software pressures.
Portfolio Diversification Insights
These 6 RCM stock picks cluster in healthcare technology and services, with THC and CR offering large-cap stability ($16.6B and $10.5B market caps), WAY and CTEV providing mid-cap growth exposure, and TBRG/CCLD adding small-cap upside. Sector allocation emphasizes ~70% healthcare RCM pure-plays (WAY, CTEV, TBRG, CCLD) and 30% diversified anchors (THC, CR), balancing high-ROIC names like CCLD 18.1% and CR 20.8% against steady revenue giants like THC $20.9B. Cross-analysis shows synergy: pair THC's scale with WAY's 27.4% FCF margin for cash flow diversification, mitigating single-stock risks while targeting undervalued stocks across market caps.
Market Timing & Entry Strategies
Consider entry during healthcare earnings seasons or post-RCM policy updates, when volatility creates dips below intrinsic values (e.g., THC at $414.5). Dollar-cost average into high-quality picks like CCLD (6.9 rating) on 5-10% pullbacks, monitoring ROIC trends above 12% for conviction. Use Value Sense screeners for real-time signals on revenue growth inflection (e.g., WAY's 14.8%), avoiding overexposure pre-macro shifts like rate cuts impacting debt-laden names.
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FAQ Section
How were these stocks selected?
These 6 best RCM stock picks were curated via Value Sense's AI-powered screener, emphasizing intrinsic value upside, quality ratings >5.0, and key metrics like ROIC and FCF margins for undervalued stocks to buy.
What's the best stock from this list?
CareCloud (CCLD) leads with a 6.9 quality rating, 18.1% ROIC, and 20.1% FCF margin, though THC offers scale with 32.2% 1Y return—selection depends on risk tolerance.
Should I buy all these stocks or diversify?
Diversify across large (THC, CR), mid (WAY), and small-caps (TBRG, CCLD) for balanced portfolio diversification in RCM, avoiding concentration in volatile small names like CTEV.
What are the biggest risks with these picks?
Key concerns include negative FCF (CTEV), high debt anomalies (CTEV), and 1Y declines (e.g., WAY -36.1%), plus sector risks like policy changes affecting reimbursements.
When is the best time to invest in these stocks?
Target entries on market dips or positive earnings sentiment, using Value Sense backtesting to time based on historical ROIC/FCF trends for optimal stock watchlist positioning.