QM · rank #17 · 2026-10-27
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 directly reinforced by concrete fundamentals — 70% YoY revenue growth, a record $129M funded backlog (82% YoY growth), gross margin expansion from 36.8% to 45.8%, and reaffirmed FY2029 targets — giving the price move an earnings-revision and backlog-visibility anchor rather than pure sentiment.
Material risks
- 1~91% U.S. Government revenue concentration means a defense-budget sequester, continuing resolution, or program cancellation could rapidly deflate the backlog that underpins both the quality and momentum thesis simultaneously.
- 2ROE of 3.0% and profit margin of 3.7% reflect the trailing-twelve-month period that included FY2026's $3M operating loss, meaning the quality signal is lagging and the current margin inflection must sustain to validate the screen — any fixed-price contract cost overrun could reverse it quickly.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.