Quality Momentum

QM · rank #5 · 2026-09-04

HOT

XETRA · EUR · $37.20B (USD)

SignalStrong Buy6.4strength 6.4 / 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.
+135.68%
ROE TTM
Return on equity, trailing 12 months.
+92.9%
Profit margin
Net profit margin, trailing 12 months.
+2.2%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$37.20B
Anchor (recent)
Close on 2026-08-05
$449.80
Anchor (far)
Close on 2025-08-05
$190.85

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

HOCHTIEF is Germany's largest construction and infrastructure group, operating globally through Turner, Flatiron, and Dragados with a record €84.8–85 billion order backlog heavily weighted toward AI data centers, energy transition, and defense.

Rationale

The momentum_12_1 of 1.36 and ROE of 92.9% are directly reinforced by H1 2026 operational net profit up 35%, raised full-year guidance implying 30–40% growth, and a record backlog providing ~21–24 months of revenue visibility — exactly the earnings acceleration quality-momentum screens for.

Material risks

  • 1Data center orders (~€13.3 billion in H1 2026 alone) now constitute a structurally concentrated portion of backlog, so any hyperscaler capex pullback or in-house build shift would disproportionately impair the growth thesis that is driving both the momentum signal and raised guidance.
  • 2The Flatiron-Dragados North American merger integration, combined with managing a record backlog on a freshly issued €650 million bond and a newly minted BBB rating, leaves limited margin for project slippage or cash generation shortfalls without threatening the credit profile.

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