Fabrinet (FN) Gains As Market Dips: What You Should Know
Fabrinet (FN) closed at $95.59 in the latest trading session, marking a +0.62% move from the prior day. This move outpaced the S&P 500's daily loss of 0.6%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 2.87%.
Heading into today, shares of the company that assembles optical, electro-mechanical and electronic devices for other companies had lost 15.14% over the past month, lagging the Computer and Technology sector's gain of 3.62% and the S&P 500's gain of 6.22% in that time.
Investors will be hoping for strength from Fabrinet as it approaches its next earnings release. In that report, analysts expect Fabrinet to post earnings of $1.90 per share. This would mark year-over-year growth of 26.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $652.62 million, up 15.63% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.71 per share and revenue of $2.65 billion. These totals would mark changes of +25.77% and +17.19%, respectively, from last year.
Any recent changes to analyst estimates for Fabrinet should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Fabrinet currently has a Zacks Rank of #3 (Hold).
Investors should also note Fabrinet's current valuation metrics, including its Forward P/E ratio of 12.33. This valuation marks a discount compared to its industry's average Forward P/E of 17.6.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Fabrinet (FN) : Free Stock Analysis Report
