Fabrinet (FN) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Fabrinet (FN) closed at $96.94, marking a -1.33% move from the previous day. This change lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 2.51%.
Heading into today, shares of the company that assembles optical, electro-mechanical and electronic devices for other companies had lost 14.12% over the past month, lagging the Computer and Technology sector's gain of 4% and the S&P 500's gain of 6.17% 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 $1.90, up 26.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $652.62 million, up 15.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.71 per share and revenue of $2.65 billion, which would represent changes of +25.77% and +17.19%, respectively, from the prior year.
Any recent changes to analyst estimates for Fabrinet should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. Fabrinet currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Fabrinet is currently trading at a Forward P/E ratio of 12.75. This valuation marks a discount compared to its industry's average Forward P/E of 17.8.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% 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
