Quality Momentum

QM · rank #11 · 2026-07-21

FORM

NASDAQ · $8.35B (USD)

SignalBuy3.3strength 3.3 / 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.
+359.45%
ROE TTM
Return on equity, trailing 12 months.
+6.8%
Profit margin
Net profit margin, trailing 12 months.
+8.1%
Market cap (USD)
Size filter: > $500M required.
$8.35B
Anchor (recent)
Close on 2026-06-18
$149.55
Anchor (far)
Close on 2025-06-20
$32.55

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

FormFactor designs and manufactures advanced probe cards used in wafer-level semiconductor testing, serving leading foundry, logic, and memory customers globally with a focus on fine-pitch, high-speed contact at leading-edge nodes.

Rationale

The momentum_12_1 signal of 3.59 is directly reinforced by consecutive quarterly beats, a 12.6% post-earnings gap to 52-week highs, and Q2 guidance implying further revenue and margin expansion driven by structural Asia wafer-test capex, not mere sentiment rotation.

Material risks

  • 1Leading foundry and memory customers internalizing probe-card design or aggressively multi-sourcing would directly erode FormFactor's qualification-cycle moat and pricing power, the structural pillar underpinning the quality side of this thesis.
  • 2Tightening U.S. export controls or a pullback in Asian semiconductor capex spending could abruptly compress order flow, given management's explicit call-out of Asia-based customers as the primary demand driver for current record revenue.

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