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Fabrinet (FN) Dips More Than Broader Markets: What You Should Know

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Fabrinet (FN - Free Report) closed the most recent trading day at $112.29, moving -1.28% from the previous trading session. This change lagged the S&P 500's daily loss of 0.25%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq lost 1.88%.

Heading into today, shares of the company that assembles optical, electro-mechanical and electronic devices for other companies had lost 4.98% over the past month, lagging the Computer and Technology sector's gain of 6.89% and the S&P 500's gain of 1.48% in that time.

Wall Street will be looking for positivity from Fabrinet as it approaches its next earnings report date. The company is expected to report EPS of $1.90, up 26.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $652.62 million, up 15.63% from the prior-year quarter.

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.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Fabrinet is currently a Zacks Rank #1 (Strong Buy).

Investors should also note Fabrinet's current valuation metrics, including its Forward P/E ratio of 14.76. Its industry sports an average Forward P/E of 18.81, so we one might conclude that Fabrinet is trading at a discount comparatively.

The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.

To follow FN in the coming trading sessions, be sure to utilize Zacks.com.


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