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Fabrinet (FN) Gains But Lags Market: What You Should Know
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In the latest trading session, Fabrinet (FN - Free Report) closed at $134.25, marking a +1.88% move from the previous day. The stock lagged the S&P 500's daily gain of 1.89%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Heading into today, shares of the company that assembles optical, electro-mechanical and electronic devices for other companies had gained 2.65% over the past month, lagging the Computer and Technology sector's gain of 4.01% and outpacing the S&P 500's gain of 2.3% 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 $1.89, up 26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $652.26 million, up 15.11% from the year-ago period.
FN's full-year Zacks Consensus Estimates are calling for earnings of $7.48 per share and revenue of $2.63 billion. These results would represent year-over-year changes of +22.02% and +16.24%, respectively.
Investors should also note any recent changes to analyst estimates for Fabrinet. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Fabrinet currently has a Forward P/E ratio of 17.61. For comparison, its industry has an average Forward P/E of 17.76, which means Fabrinet is trading at a discount to the group.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Gains But Lags Market: What You Should Know
In the latest trading session, Fabrinet (FN - Free Report) closed at $134.25, marking a +1.88% move from the previous day. The stock lagged the S&P 500's daily gain of 1.89%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Heading into today, shares of the company that assembles optical, electro-mechanical and electronic devices for other companies had gained 2.65% over the past month, lagging the Computer and Technology sector's gain of 4.01% and outpacing the S&P 500's gain of 2.3% 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 $1.89, up 26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $652.26 million, up 15.11% from the year-ago period.
FN's full-year Zacks Consensus Estimates are calling for earnings of $7.48 per share and revenue of $2.63 billion. These results would represent year-over-year changes of +22.02% and +16.24%, respectively.
Investors should also note any recent changes to analyst estimates for Fabrinet. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Fabrinet currently has a Forward P/E ratio of 17.61. For comparison, its industry has an average Forward P/E of 17.76, which means Fabrinet is trading at a discount to the group.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.