← Quality Momentum
QM · rank #11 · 2026-10-23
CDNA
NASDAQ · $3.66B (USD)
SignalBuy3.5strength 3.5 / 10
verdict · PROCEED
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +248.81% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +29.5% |
| Profit margin Net profit margin, trailing 12 months. | +24.2% |
| Market cap (USD) Size filter: > $500M required. | $3.66B |
| Anchor (recent) Close on 2026-09-23 | $54.31 |
| Anchor (far) Close on 2025-09-23 | $15.57 |
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
CareDx is a healthcare diagnostics company providing transplant monitoring tests (AlloSure, AlloMap) and specialty-oncology MRD assays (NavDx) for patient care.
Rationale
High 12-1 momentum (2.49) is validated by strong underlying financial quality, including a 29.5% TTM ROE, 24.2% profit margin, 52% YoY revenue growth, and raised 2026 guidance.
Material risks
- 1Integration risks associated with the NavDx acquisition, particularly across billing, reimbursement claims, Epic workflow connectivity, and commercial scaling.
- 2Heavy dependence on Medicare coverage and payer reimbursement policies without long-term contracted backlog, plus near-term volatility from Q3 earnings in 6 days.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.
OpenAI
Proceed
Claude
Caution
Gemini
Proceed