Quality Momentum

QM · rank #13 · 2026-09-10

TER

NASDAQ · $52.94B (USD)

SignalBuy2.8strength 2.8 / 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.
+263.52%
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 2026-08-11
$379.56
Anchor (far)
Close on 2025-08-11
$104.41

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 AI-driven SoC and memory test platforms generated record Q2 2026 revenue of $1.33 billion, more than doubling year over year.

Rationale

The quality_momentum signal is directly reinforced by back-to-back record quarters, 300%+ EPS growth, 59.8% gross margins, and a 36.5% ROE that confirm both the momentum and quality legs of the screen are grounded in real fundamental acceleration rather than sentiment alone.

Material risks

  • 1Teradyne's moat rests on specialized installed-base stickiness rather than disclosed sole-source contracts, leaving it exposed if hyperscaler or leading-edge foundry customers accelerate in-house test capability development as AI capex budgets mature.
  • 2The business is acutely cyclical around AI semiconductor capex; any demand pause from high-end processor or HBM memory customers — or tightening export controls on chip equipment to key Asian markets — could sharply compress the elevated revenue run-rate underpinning current multiples.

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