Quality Momentum

QM · rank #8 · 2026-07-21

COHR

NYSE · $56.43B (USD)

SignalHold
verdict · CAUTION

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.
+379.77%
ROE TTM
Return on equity, trailing 12 months.
+4.7%
Profit margin
Net profit margin, trailing 12 months.
+7.1%
Market cap (USD)
Size filter: > $500M required.
$56.43B
Anchor (recent)
Close on 2026-06-18
$389.57
Anchor (far)
Close on 2025-06-20
$81.20

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

COHR is a large-cap photonics and lasers supplier to AI data centers, telecom, and industrial markets, with growing exposure to high-speed optical components and silicon photonics.

Rationale

The name fits quality_momentum because momentum is strong, revenue is growing ~21% y/y, and the business has meaningful scale and improving profitability while benefiting from AI-networking demand.

Material risks

  • 1China’s tighter export controls on indium phosphide and AXT’s permit delays could disrupt Coherent’s component supply chain and slow delivery of its optical products.
  • 2Q3 earnings were only in-line and the stock sold off despite the beat on revenue, showing the market may already be pricing in a lot of the AI-photonics growth story.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.

OpenAI
Proceed
Claude
Caution
Gemini
Error