Quality Momentum

QM · rank #14 · 2026-07-20

MKSI

NASDAQ · $23.06B (USD)

SignalBuy2.7strength 2.7 / 10
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.
+350.05%
ROE TTM
Return on equity, trailing 12 months.
+12.7%
Profit margin
Net profit margin, trailing 12 months.
+8.0%
Market cap (USD)
Size filter: > $500M required.
$23.06B
Anchor (recent)
Close on 2026-06-18
$406.37
Anchor (far)
Close on 2025-06-20
$90.29

The AI research card

Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.

Summary

MKS Instruments is a global supplier of process equipment, materials, and enabling technologies to semiconductor and electronics manufacturers, with growing exposure to AI-driven advanced packaging and semiconductor capex.

Rationale

The momentum signal (3.50) is reinforced by a concrete fundamental catalyst — Q1 2026 beat on both EPS and revenue with AI-related demand explicitly cited — while ROE of 12.7% and positive margins confirm the quality screen is not riding pure sentiment.

Material risks

  • 1Geopolitical or export-control action targeting China operations could strand the $25M Guangzhou capacity expansion and impair a meaningful portion of the Electronics & Packaging revenue base before new Malaysia capacity offsets the loss.
  • 2Elevated leverage from the €1.0B senior notes offering limits financial flexibility; a semiconductor capex downturn would compress margins and free cash flow precisely when debt service obligations are highest.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.

OpenAI
Proceed
Claude
Proceed
Gemini
Error