Quality Momentum

QM · rank #5 · 2026-06-02

TER

NASDAQ · $56.11B

verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1
Return from 12 months ago to 1 month ago.
+356.91%
ROE TTM
Return on equity, trailing 12 months.
+28.7%
Profit margin
Net profit margin, trailing 12 months.
+22.6%
Market cap
Size filter: > $500M required.
$56.11B
Anchor (recent)
Close on 2026-05-01
$345.29
Anchor (far)
Close on 2025-05-02
$75.57

The AI research card

Independent qualitative review of each pick before the order is placed.

Summary

Teradyne is a semiconductor capital equipment manufacturer specializing in test and inspection systems for chip production.

Rationale

Strong 12-month momentum (3.57) combined with solid ROE (28.75%) and profit margin (22.55%) suggests operational quality is accelerating, fitting the quality_momentum thesis.

Material risks

  • 1Semiconductor capex cycles are volatile; customer concentration among foundries/memory makers creates lumpy revenue exposure to cyclical downturns.
  • 2Intense competition from Applied Materials and KLA in test equipment could compress margins if industry demand softens.

Verdict reasoning

two_stage score=+3/3 verdicts={'openai': 'PROCEED', 'claude': 'PROCEED', 'gemini': 'PROCEED'} brief=caller-supplied