Quality Momentum

QM · rank #15 · 2026-07-23

FORM

NASDAQ · $8.35B (USD)

SignalBuy2.4strength 2.4 / 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.
+331.13%
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 2026-06-23
$142.79
Anchor (far)
Close on 2025-06-23
$33.12

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 is a leading independent probe card supplier enabling wafer-level testing at advanced nodes, with record Q1 2026 revenue of $226.1M (+32% YoY) and Q2 guidance of ~$240M reflecting sustained Asia-driven demand.

Rationale

The momentum_12_1 signal of 3.31 is directly reinforced by consecutive quarterly beats, a 12.6% post-earnings gap to 52-week highs, and accelerating revenue growth that gives the quality-momentum pairing fundamental grounding beyond pure sentiment rotation.

Material risks

  • 1Leading foundry and memory customers increasingly developing in-house probe-card capabilities or multi-sourcing from rivals could erode FormFactor's qualification-cycle moat and compress the pricing power currently reflected in above-range non-GAAP gross margins.
  • 2Earnings are reported 6 days after the as-of date (2026-07-29), meaning Q2 results land imminently — a miss or guidance cut against the elevated $240M bar could sharply reverse the momentum signal before the position matures.

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