Is Fabrinet (FN) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Fabrinet (FN). FN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 19.15, which compares to its industry's average of 20.20. Over the past year, FN's Forward P/E has been as high as 21.74 and as low as 11.15, with a median of 16.59.
We should also highlight that FN has a P/B ratio of 3.93. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.43. Over the past year, FN's P/B has been as high as 4.32 and as low as 2.30, with a median of 3.26.
Finally, investors will want to recognize that FN has a P/CF ratio of 20.64. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 25.17. Over the past 52 weeks, FN's P/CF has been as high as 22.67 and as low as 11.80, with a median of 16.69.
These are just a handful of the figures considered in Fabrinet's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FN is an impressive value stock right now.
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Fabrinet (FN) : Free Stock Analysis Report
