Quality Momentum

QM · rank #4 · 2026-07-24

NDX1

XETRA · EUR · $10.70B (USD)

SignalStrong Buy3.4strength 3.4 / 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.
+153.75%
ROE TTM
Return on equity, trailing 12 months.
+27.5%
Profit margin
Net profit margin, trailing 12 months.
+4.2%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$10.70B
Anchor (recent)
Close on 2026-06-24
$43.34
Anchor (far)
Close on 2025-06-24
$17.08

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

Nordex SE is a German onshore wind turbine OEM generating ~86% of revenue from turbine projects and ~14% from recurring service contracts on its installed fleet, with a ~EUR 17 billion order backlog providing multi-year revenue visibility.

Rationale

The momentum_12_1 of 1.54 is directly reinforced by the Q1 2026 earnings beat (EPS EUR 0.23 vs EUR 0.03 YoY), double-digit intraday share reaction, and confirmed full-year guidance, while ROE of 27.5% and improving segment EBIT margins validate the quality screen as reflecting genuine operational improvement rather than financial engineering.

Material risks

  • 1Earnings are reported 5 days after the as-of date (2026-07-29), creating binary event risk that could sharply reverse momentum if Q2 results disappoint on free cash flow normalization or margin trajectory, given Q1 FCF was already -EUR 98 million.
  • 2Tender-driven pricing pressure from Vestas, Siemens Gamesa, and GE in competitive onshore wind markets could cap the margin expansion that justifies the quality signal, as Nordex holds no sole-source position and competes on price in utility procurement.

AI verdict council

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

OpenAI
Proceed
Claude
Proceed
Gemini
Proceed