Fabrinet (FN - Free Report) closed the most recent trading day at $55.45, moving -0.86% from the previous trading session. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, added 0.44%.
Prior to today's trading, shares of the company that assembles optical, electro-mechanical and electronic devices for other companies had gained 5.33% over the past month. This has outpaced the Computer and Technology sector's gain of 4.56% and the S&P 500's gain of 2.91% in that time.
Investors will be hoping for strength from FN as it approaches its next earnings release. On that day, FN is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 25.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $389.08 million, up 17.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.73 per share and revenue of $1.57 billion, which would represent changes of +25.17% and +14.68%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for FN. Recent revisions tend to reflect the latest near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FN currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, FN currently has a Forward P/E ratio of 15.02. This valuation marks a discount compared to its industry's average Forward P/E of 15.66.
Investors should also note that FN has a PEG ratio of 1.15 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Electronics - Miscellaneous Components stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 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.
You can find more information on all of these metrics, and much more, on Zacks.com.