Fabrinet (FN) Outpaces Stock Market Gains: What You Should Know
Fabrinet (FN) closed the most recent trading day at $126.35, moving +1.67% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.15%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 7.23%.
Prior to today's trading, shares of the company that assembles optical, electro-mechanical and electronic devices for other companies had gained 4.46% over the past month. This has outpaced the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 3.08% in that time.
Investors will be hoping for strength from Fabrinet as it approaches its next earnings release. The company is expected to report EPS of $1.80, up 7.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $641.88 million, up 9.19% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.61 per share and revenue of $2.63 billion, which would represent changes of +24.14% and +16.31%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Fabrinet. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 is currently a Zacks Rank #4 (Sell).
Investors should also note Fabrinet's current valuation metrics, including its Forward P/E ratio of 16.32. This represents a discount compared to its industry's average Forward P/E of 19.34.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FN in the coming trading sessions, be sure to utilize Zacks.com.
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Fabrinet (FN) : Free Stock Analysis Report
