Quality Momentum

QM · rank #11 · 2026-09-08

CDNA

NASDAQ · $2.63B (USD)

SignalBuy3.1strength 3.1 / 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.
+290.06%
ROE TTM
Return on equity, trailing 12 months.
+29.5%
Profit margin
Net profit margin, trailing 12 months.
+24.2%
Market cap (USD)
Size filter: > $500M required.
$2.63B
Anchor (recent)
Close on 2026-08-07
$46.69
Anchor (far)
Close on 2025-08-08
$11.97

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

CareDx is a precision medicine diagnostics company specializing in non-invasive molecular testing and digital health platforms for transplant patient monitoring [9].

Rationale

The strong quality-momentum signal is validated by outstanding 52% year-over-year revenue growth in Q2 2026, multiple upward guidance revisions, and improved profitability following the divestiture of its lower-margin lab products [5, 9].

Material risks

  • 1Intense competition in the transplant molecular diagnostics space from rivals like Natera and Eurofins could erode CareDx's market share and pressure testing margins [9].
  • 2Reimbursement and policy volatility, specifically Medicare local coverage determinations that have already negatively impacted 2026 revenue expectations by approximately $7.5 million [9].

AI verdict council

Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.

OpenAI
Proceed
Claude
Caution
Gemini
Proceed