QM · rank #18 · 2026-10-26
FEIM
NASDAQ · $734M (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +193.69% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +3.0% |
| Profit margin Net profit margin, trailing 12 months. | +3.7% |
| Market cap (USD) Size filter: > $500M required. | $734M |
| Anchor (recent) Close on 2026-09-25 | $88.43 |
| Anchor (far) Close on 2025-09-26 | $30.11 |
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
Frequency Electronics (FEIM) designs and manufactures precision time-and-frequency control products for military satellites, secure communications, C4ISR, and GPS systems, with ~91% of revenue tied to U.S. Government end-use programs.
Rationale
The momentum_12_1 signal of 1.94 is reinforced by concrete fundamental catalysts — record Q1 FY2027 revenue up 70% YoY, an 82% surge in funded backlog to $129M, and gross margin expansion from 37% to 46% — suggesting the price move reflects genuine earnings inflection rather than pure sentiment rotation.
Material risks
- 1Approximately 91% of revenue derives from U.S. Government and defense programs, meaning a single budget sequestration, continuing resolution, or procurement freeze could stall the backlog conversion that underpins the entire momentum thesis.
- 2TTM ROE of 3.0% and profit margin of 3.7% reflect the weak FY2026 baseline (operating loss of $3M), so the quality signal is backward-looking and the fiscal-2029 margin targets ($150M revenue, 30% operating margin) remain unproven execution promises.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.