Quality Momentum

QM · rank #7 · 2026-07-21

TER

NASDAQ · $51.68B (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.
+408.80%
ROE TTM
Return on equity, trailing 12 months.
+28.7%
Profit margin
Net profit margin, trailing 12 months.
+22.6%
Market cap (USD)
Size filter: > $500M required.
$51.68B
Anchor (recent)
Close on 2026-06-18
$437.92
Anchor (far)
Close on 2025-06-20
$86.07

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

Teradyne (TER) is a leading semiconductor test and robotics equipment supplier, with Semiconductor Test driving most revenue and benefiting from AI, data-center, networking, and memory demand.

Rationale

The quant signal fits this name because TER combines strong 12-1 momentum with high-quality fundamentals (ROE 28.8% and net margin 22.6%) backed by a record Q1 2026 beat and raised near-term demand visibility.

Material risks

  • 1Revenue concentration in Semiconductor Test and a small set of large chip customers leaves TER exposed if AI/test spending normalizes or a major customer slows orders.
  • 2The stock is vulnerable to valuation compression if investors decide the AI-driven growth burst is not durable, especially ahead of Q2 earnings on July 28.

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