Quality Momentum

QM · rank #2 · 2026-09-10

KGH

GPW · PLN · $20.21B (USD)

SignalStrong Buy4.9strength 4.9 / 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.
+172.12%
ROE TTM
Return on equity, trailing 12 months.
+24.1%
Profit margin
Net profit margin, trailing 12 months.
+20.0%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$20.21B
Anchor (recent)
Close on 2026-08-11
$364.50
Anchor (far)
Close on 2025-08-11
$133.95

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

KGHM Polska Miedz is a vertically integrated Polish copper and silver producer with global operations including the Sierra Gorda mine in Chile and a dominant position among European refined copper suppliers.

Rationale

The momentum_12_1 signal of 1.72 is directly validated by a copper price rally driving H1 2026 net profit roughly tenfold higher year-on-year, while ROE of 24% and profit margin of 20% confirm the quality screen is capturing real earnings power, not accounting noise.

Material risks

  • 1Earnings are structurally leveraged to copper price cycles rather than volume growth, meaning a commodity reversal — not a company-specific failure — could rapidly collapse the ROE and margin metrics that justify the quality score.
  • 2Molybdenum output guided down 49% year-on-year in 2026 illustrates by-product mix risk, and Sierra Gorda remains exposed to Chilean policy and taxation shifts that could impair a USD 504 million carried asset.

AI verdict council

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

OpenAI
Proceed
Gemini
Proceed
Claude
Proceed