QM · rank #19 · 2026-10-21
COHR
NYSE · $45.65B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +194.68% |
|---|---|
| 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. | $45.65B |
| Anchor (recent) Close on 2026-09-21 | $321.52 |
| Anchor (far) Close on 2025-09-19 | $109.11 |
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 (COHR) is a vertically integrated photonics company supplying lasers, transceivers, optical connectivity, and specialty materials primarily to AI datacenters, which drove 79% of Q4 FY2026 revenue and 40% full-year segment growth.
Rationale
The momentum_12_1 signal of 1.95 is directly anchored to fundamental acceleration—record $2.05B Q4 revenue, 34% YoY growth, rapid deleveraging to 0.7x net leverage, and Q1 FY2027 guidance of $2.2–$2.4B—making the price move quality-driven rather than sentiment-only.
Material risks
- 1Hyperscaler customer concentration (two customers each >10% of FY2025 revenue) means a capex pullback, dual-sourcing decision, or in-house optical development by a top customer would directly collapse the revenue ramp underpinning both the momentum and quality signals.
- 2Chinese supplier competition (InnoLight, Eoptolink) and potential technology-path displacement toward co-packaged optics or linear-drive architectures could compress transceiver margins and erode the pricing power implied by the current 38.5% gross margin trajectory.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.