← Quality Momentum

QM · rank #13 · 2026-10-21

HOT

XETRA · EUR · $32.18B (USD)

SignalBuy1.6strength 1.6 / 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.
+75.44%
ROE TTM
Return on equity, trailing 12 months.
+92.9%
Profit margin
Net profit margin, trailing 12 months.
+2.2%
Market cap (USD)
Size filter: > $300M required (USD-equivalent).
$32.18B
Anchor (recent)
Close on 2026-09-21
$400.00
Anchor (far)
Close on 2025-09-19
$228.00

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

HOCHTIEF is a global engineering and construction group operating primarily through Turner (US), CIMIC (Asia-Pacific/mining), and Abertis (infrastructure concessions), with 98% of revenue generated internationally and a record €84.8 billion order backlog.

Rationale

The quality_momentum signal is reinforced by concrete fundamentals — 75% price momentum aligns with 35% H1 operational net profit growth, raised full-year guidance implying 30–40% earnings expansion, a swing from €1.41 billion net debt to net cash, and ~24 months of revenue visibility from a signed, named backlog rather than sentiment rotation.

Material risks

  • 1Turner's backlog is ~42% data-center concentrated, meaning a hyperscaler capex pullback or grid-connection freeze could rapidly deflate the single largest growth driver and invalidate the earnings trajectory underpinning both the quality and momentum legs of the thesis.
  • 2Construction remains competitively bid with thin margins (2.2% net), so raw-material, labor, or financing cost inflation above contract escalation clauses could compress the operational PBT margin improvement that justifies the elevated ROE signal of 0.93.

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