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Is Fabrinet (FN) Outperforming Other Computer and Technology Stocks This Year?

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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Fabrinet (FN - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Fabrinet is a member of the Computer and Technology sector. This group includes 605 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Fabrinet is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for FN's full-year earnings has moved 4.9% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, FN has moved about 56.4% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 13.8% on average. This shows that Fabrinet is outperforming its peers so far this year.

Another Computer and Technology stock, which has outperformed the sector so far this year, is Jabil (JBL - Free Report) . The stock has returned 55.9% year-to-date.

For Jabil, the consensus EPS estimate for the current year has increased 5.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Fabrinet belongs to the Electronics - Miscellaneous Components industry, a group that includes 24 individual companies and currently sits at #100 in the Zacks Industry Rank. On average, this group has gained an average of 17.3% so far this year, meaning that FN is performing better in terms of year-to-date returns.

Jabil, however, belongs to the Electronics - Manufacturing Services industry. Currently, this 4-stock industry is ranked #12. The industry has moved +64.4% so far this year.

Investors interested in the Computer and Technology sector may want to keep a close eye on Fabrinet and Jabil as they attempt to continue their solid performance.


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