Is Fabrinet (FN) Stock Outpacing Its Computer and Technology Peers This Year?
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Fabrinet (FN) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Fabrinet is one of 630 companies in the Computer and Technology group. The Computer and Technology group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Fabrinet is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for FN's full-year earnings has moved 1.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that FN has returned about 41.9% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 39.6%. This means that Fabrinet is performing better than its sector in terms of year-to-date returns.
Another stock in the Computer and Technology sector, Aehr Test Systems (AEHR), has outperformed the sector so far this year. The stock's year-to-date return is 99.9%.
For Aehr Test Systems, the consensus EPS estimate for the current year has increased 7.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Fabrinet belongs to the Electronics - Miscellaneous Components industry, a group that includes 32 individual companies and currently sits at #172 in the Zacks Industry Rank. Stocks in this group have gained about 8.8% so far this year, so FN is performing better this group in terms of year-to-date returns.
Aehr Test Systems, however, belongs to the Electronics - Measuring Instruments industry. Currently, this 5-stock industry is ranked #23. The industry has moved -14.3% so far this year.
Fabrinet and Aehr Test Systems could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
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Fabrinet (FN) : Free Stock Analysis Report
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