Quality Momentum

QM · rank #5 · 2026-07-27

TER

NASDAQ · $58.51B (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.
+384.76%
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.
$58.51B
Anchor (recent)
Close on 2026-06-26
$436.86
Anchor (far)
Close on 2025-06-27
$90.12

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

Teradyne (TER) is a semiconductor test leader with a growing Robotics and Product Test business, but Q1 2026 was dominated by AI-driven Semiconductor Test demand that pushed revenue to a record $1.282B.

Rationale

The name fits quality_momentum because it combines very strong 12-1 momentum with high ROE (28.8%) and robust profit margin (22.6%), while the latest quarter showed record profitability and upside guidance.

Material risks

  • 1The biggest thesis risk is that AI-related test demand normalizes quickly after a huge Q1 step-up, which would compress the premium growth/margin narrative that is driving the momentum.
  • 2Teradyne remains highly dependent on a concentrated set of large chip customers and their capex cycles, so any shift to in-house test or a slowdown at key accounts like Qualcomm or Texas Instruments would hit demand hard.

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