QM · rank #20 · 2026-09-08
COHR
NYSE · $52.61B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +228.42% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +8.0% |
| Profit margin Net profit margin, trailing 12 months. | +11.3% |
| Market cap (USD) Size filter: > $500M required. | $52.61B |
| Anchor (recent) Close on 2026-08-07 | $379.13 |
| Anchor (far) Close on 2025-08-08 | $115.44 |
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
Coherent is a global photonics leader supplying optical components, lasers, and networking systems to AI data centers, telecom, and industrial customers, with ~$7.1B in fiscal 2026 revenue.
Rationale
The 34% YoY revenue surge in Q4 FY2026 and rising non-GAAP EPS of $1.74 validate the momentum signal, while improving profit margins and positive ROE confirm the quality overlay is grounded in real earnings acceleration rather than sentiment alone.
Material risks
- 1Hyperscale customers (Microsoft, Google, Amazon) are actively developing in-house optical interconnect and co-packaged optics capabilities, which is a concrete internalisation threat that could erode Coherent's merchant-market volumes and pricing power over a 2–3 year horizon.
- 2Export controls on advanced photonics and InP-based components to China represent a binary revenue risk given China's historical significance as a buyer of optical and laser components across Coherent's product lines.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.