Quality Momentum

QM · rank #5 · 2026-07-24

STMPA

PARIS · EUR · $59.39B (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.
+148.51%
ROE TTM
Return on equity, trailing 12 months.
+0.9%
Profit margin
Net profit margin, trailing 12 months.
+1.2%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$59.39B
Anchor (recent)
Close on 2026-06-24
$63.36
Anchor (far)
Close on 2025-06-24
$25.50

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

STMicroelectronics is a diversified analog, mixed-signal and power semiconductor supplier to automotive, industrial, data center and communications customers, now showing a cyclical recovery in revenues and profitability.

Rationale

The stock’s strong 12-1 momentum aligns with a Q2 2026 earnings beat, 26% YoY revenue growth, and a return to positive net income/free cash flow, which can support a quality-momentum screen despite still-modest ROE and margins.

Material risks

  • 1The manufacturing reshaping program and NXP MEMS integration could slip on cost, yield or timing, undermining the improving earnings trend.
  • 2STMicro’s broadline semiconductor portfolio still faces pricing pressure and customer substitution in cyclical auto/industrial end markets, which can fade momentum quickly.

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