Quality Momentum

QM · rank #7 · 2026-07-24

COHR

NYSE · $61.28B (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.
+384.81%
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.
$61.28B
Anchor (recent)
Close on 2026-06-24
$392.50
Anchor (far)
Close on 2025-06-24
$80.96

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

Coherent (COHR) is a $61B photonics and laser systems supplier serving AI datacenters, telecom, and industrial markets, with leadership in indium phosphide optical components, transceivers, and silicon photonics.

Rationale

The name fits quality_momentum because 12-1 momentum is strong, profitability is positive, and recent revenue growth plus non-GAAP margin expansion show the AI-photonics franchise is still executing.

Material risks

  • 1China’s tightening export controls on indium phosphide and supplier permit delays could disrupt component availability and blunt the company’s optical-components advantage.
  • 2ROE of 4.7% and profit margin of 7.1% indicate only middling quality, so the stock may be more momentum- than fundamentals-driven if AI optics enthusiasm cools.

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