Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth S ...

Fabrinet (FN) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a ...

Core Viewpoint - Fabrinet is positioned as a key player in advanced optical packaging and manufacturing services, with a focus on telecommunications, data communications, and industrial lasers, despite facing competition and challenges in certain segments [1]. Group 1: Financial Performance - Fabrinet's Q2 results exceeded its own guidance, indicating strong overall performance [3][6]. - The company reported a stock price of $457.57, reflecting a 2.01% increase or $9.04, showcasing resilience in the market [2][6]. - The market capitalization of Fabrinet is approximately $16.39 billion, with a trading volume of 231,684 shares, indicating investor interest [5]. Group 2: Market Outlook - Wolfe Research has set a price target of $540 for Fabrinet, suggesting a potential upside of 17.91% from its current trading price [2][6]. - Despite concerns regarding AI revenue expectations, the non-AI segments of the company showed robust strength, contributing to overall profitability [3][6]. Group 3: Segment Challenges - The automotive segment of Fabrinet faced setbacks due to industry-wide challenges, impacting its performance [4][6]. - The stock has shown significant volatility, with a trading range between a low of $449.31 and a high of $465.85 on the current day, and a yearly range of $148.55 to $531.22 [4][6].

Fabrinet ( FN ) has been a clear benefactor of the AI CapEx cycle. The optical and electronic component company’s optical transceivers, optical cables, and other products are important in building out data center infrastructure for AI. GrowthI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding ...

Summary of J.P. Morgan's Optical Group Conference Call Industry Overview - The Optical group has shown resilience with a +10% performance year-to-date, outperforming the coverage average of -1% and the S&P 500 at +1% [1][3] - Concerns regarding AI valuations initially hindered growth, but strong fundamentals have emerged, supported by positive data points from December and January [1] Key Developments - Corning secured a $6 billion multi-year fiber optics agreement with Meta, indicating strong demand in the sector [1] - U.S. hyperscaler earnings and capital expenditure disclosures have been solid, contributing to an increase in market Total Addressable Market (TAM) expectations by over $5 billion for 2026 [1] Company-Specific Insights Coherent Corp (COHR) - Expected to report F2Q26 results ahead of expectations, driven by strong datacom and telecom trends [12] - Anticipated gross margin expansion, potentially reaching 40% or greater earlier than expected, supporting a bullish EPS outlook of ~$9 for CY27 [12][20] - Current share price trades at 28x CY27 earnings, below the cohort average of 30x+, presenting an attractive investment opportunity [12][20] Fabrinet (FN) - Positioned for upside in F2Q26 and F3Q26 results, driven by customer ramps in datacom, telecom, and HPC segments [15][30] - Anticipated revenue growth of +14% year-over-year for F3Q26, with a focus on Nvidia's ramp impacting overall performance [15][30] - Shares currently trade at 29x CY27 earnings, reflecting a modest discount compared to peers [15][30] Lumentum (LITE) - Facing a challenging setup with high buy-side expectations, trading at 36x CY27 earnings [16][42] - Expected revenue growth of +64% year-over-year for F2Q26, but concerns exist regarding the ability to meet lofty expectations [16][42] - The upcoming annual Investor Briefing may not provide significant updates on long-term financial frameworks, adding to uncertainty [16] Valuation and Price Targets - Coherent's price target set at $215, based on a P/E multiple of ~29x for CY27E EPS [21] - Fabrinet's price target set at $530, reflecting a target P/E multiple of ~30x [31] - Lumentum's price target set at $350, based on a ~30x P/E target multiple [43] Risks - Industry-wide pricing pressure could negatively impact earnings forecasts for optical component companies, including Coherent, Fabrinet, and Lumentum [23][35][45] - Vertical integration by optical system suppliers poses competitive risks, potentially leading to pricing pressures [25][48] - Customer concentration risks exist for all three companies, with significant revenue dependence on a few large customers [37][49] Conclusion - The Optical group is experiencing a rebound with strong fundamentals, but high valuations necessitate caution among investors. Selectivity is advised as companies navigate potential risks and pricing pressures in the optical component market [3][12][16]

Disclaimer: This newsletter's content aims to provide readers with the latest technology trends and changes in the industry, and should not be construed as business or financial advice. You should always do your own research before making any investment decisions. Please see the About page for more details. 免责声明：本通讯的内容旨在向读者提供最新的技术趋势和行业变动，不应被视为商业或金融建 议。在做出任何投资决策之前，您应始终自行进行研究。更多详情请参见 " 关于 " 页面。 In the previous article that I wrote back in July this year (The Bonder War – An update on ASMPT (522 HK)，BESI (BESI ...

复杂光学与电子制造服务提供商Fabrinet（FN）周二尾盘重挫11.8%，尽管该公司公布了强劲的第二财 季业绩，但其股票仍遭到获利了结。 责任编辑：张俊 SF065 责任编辑：张俊 SF065 复杂光学与电子制造服务提供商Fabrinet（FN）周二尾盘重挫11.8%，尽管该公司公布了强劲的第二财 季业绩，但其股票仍遭到获利了结。 ...

Key Takeaways FN posted Q2 non-GAAP EPS of $3.36, up 28.7% Y/Y, beating consensus estimates by 3.07%.FN's revenues rose 35.9% Y/Y to $1.13B, the fastest growth rate since IPO and 5.03% above estimates.FN's non-optical segment grew 61% Y/Y to $300.3M, led by automotive, industrial laser and HPC demand.Fabrinet (FN) reported non-GAAP earnings of $3.36 per share in second-quarter fiscal 2026, beating the Zacks Consensus Estimate by 3.07%. The figure increased 28.7% year over year.Revenues of $1.13 million incr ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________ FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended December 26, 2025 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from__________to__________ Commission File Number: 001-34775 FABRINET (Exact name of registrant as specified in i ...

Fabrinet (FN) came out with quarterly earnings of $3.36 per share, beating the Zacks Consensus Estimate of $3.26 per share. This compares to earnings of $2.61 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +3.17%. A quarter ago, it was expected that this company that assembles optical, electro-mechanical and electronic devices for other companies would post earnings of $2.83 per share when it actually produced earnings of $2. ...