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Are Investors Undervaluing Fabrinet (FN) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Fabrinet (FN - Free Report) . 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 15.16, which compares to its industry's average of 21.89. FN's Forward P/E has been as high as 16.85 and as low as 10.54, with a median of 13.83, all within the past year.
FN is also sporting a PEG ratio of 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FN's PEG compares to its industry's average PEG of 1.82. Over the last 12 months, FN's PEG has been as high as 1.30 and as low as 0.81, with a median of 1.06.
Investors should also recognize that FN has a P/B ratio of 2.50. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.56. Over the past year, FN's P/B has been as high as 2.76 and as low as 1.89, with a median of 2.32.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fabrinet is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FN feels like a great value stock at the moment.
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Are Investors Undervaluing Fabrinet (FN) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Fabrinet (FN - Free Report) . 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 15.16, which compares to its industry's average of 21.89. FN's Forward P/E has been as high as 16.85 and as low as 10.54, with a median of 13.83, all within the past year.
FN is also sporting a PEG ratio of 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FN's PEG compares to its industry's average PEG of 1.82. Over the last 12 months, FN's PEG has been as high as 1.30 and as low as 0.81, with a median of 1.06.
Investors should also recognize that FN has a P/B ratio of 2.50. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.56. Over the past year, FN's P/B has been as high as 2.76 and as low as 1.89, with a median of 2.32.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fabrinet is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FN feels like a great value stock at the moment.