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Fabrinet (FN) Outpaces Stock Market Gains: What You Should Know
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Fabrinet (FN - Free Report) closed the most recent trading day at $112.77, moving +1.76% from the previous trading session. This change outpaced the S&P 500's 0.17% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the company that assembles optical, electro-mechanical and electronic devices for other companies had lost 7.59% in the past month. In that same time, the Computer and Technology sector gained 8.4%, while the S&P 500 gained 0.25%.
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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $652.62 million, up 15.63% from the year-ago period.
FN's full-year Zacks Consensus Estimates are calling for earnings of $7.71 per share and revenue of $2.65 billion. These results would represent year-over-year changes of +25.77% and +17.19%, respectively.
It is also important to note the recent changes to analyst estimates for Fabrinet. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Fabrinet is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Fabrinet has a Forward P/E ratio of 14.38 right now. For comparison, its industry has an average Forward P/E of 19.23, 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 149, which puts it in the bottom 41% 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) Outpaces Stock Market Gains: What You Should Know
Fabrinet (FN - Free Report) closed the most recent trading day at $112.77, moving +1.76% from the previous trading session. This change outpaced the S&P 500's 0.17% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the company that assembles optical, electro-mechanical and electronic devices for other companies had lost 7.59% in the past month. In that same time, the Computer and Technology sector gained 8.4%, while the S&P 500 gained 0.25%.
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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $652.62 million, up 15.63% from the year-ago period.
FN's full-year Zacks Consensus Estimates are calling for earnings of $7.71 per share and revenue of $2.65 billion. These results would represent year-over-year changes of +25.77% and +17.19%, respectively.
It is also important to note the recent changes to analyst estimates for Fabrinet. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Fabrinet is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Fabrinet has a Forward P/E ratio of 14.38 right now. For comparison, its industry has an average Forward P/E of 19.23, 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 149, which puts it in the bottom 41% 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.