Fabrinet(FN) ZACKS·2024-08-23 17:01Core Viewpoint - Fabrinet (FN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Fabrinet for the fiscal year ending June 2025 is projected at $9.91 per share, reflecting an 11.6% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for Fabrinet has risen by 5.7%, indicating a trend of increasing earnings estimates [7]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [6]. - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks receive a 'Strong Buy' or 'Buy' rating, which highlights their superior earnings estimate revision characteristics [8][9]. Market Implications - The upgrade to Zacks Rank 2 positions Fabrinet in the top 20% of Zacks-covered stocks, suggesting potential for higher stock price movement in the near term due to favorable earnings outlook [9].