Quality Momentum

QM · rank #16 · 2026-09-08

TER

NASDAQ · $52.94B (USD)

SignalBuy1.9strength 1.9 / 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.
+253.85%
ROE TTM
Return on equity, trailing 12 months.
+36.5%
Profit margin
Net profit margin, trailing 12 months.
+25.8%
Market cap (USD)
Size filter: > $500M required.
$52.94B
Anchor (recent)
Close on 2026-08-07
$379.31
Anchor (far)
Close on 2025-08-08
$107.20

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 is a semiconductor test equipment leader whose SoC, memory, and interface test systems are riding a structural surge in AI-driven chip production ramp-ups.

Rationale

Record Q2 2026 revenue of $1.33B (+100% YoY), non-GAAP EPS of $2.47 beating consensus by ~18%, 36% ROE, and above-Street Q3 guidance collectively validate both the momentum and quality legs of the screen with hard fundamental data rather than sentiment alone.

Material risks

  • 1AI capex cycle concentration — roughly 85% of revenue is Semiconductor Test, meaning any deceleration in hyperscaler GPU/HBM build-outs would hit TER disproportionately and rapidly reverse the momentum signal.
  • 2Export control escalation targeting advanced chip test equipment to China or other restricted regions could abruptly remove a material revenue channel with little lead time for customer substitution.

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