(FN) Fabrinet - Ratings and Ratios

Fabrinet is a leading provider of advanced optical and electro-mechanical manufacturing services, catering to a diverse range of industries including optical communication, industrial lasers, automotive, medical devices, and sensors. The companys capabilities span the entire manufacturing process, from design and engineering to final assembly and testing, enabling it to deliver high-quality, customized solutions to its clients.

With a strong presence in North America, Asia-Pacific, and Europe, Fabrinet serves original equipment manufacturers (OEMs) across various sectors, providing them with critical components and sub-systems that enable the transmission, reception, and processing of data, voice, and video communications. The companys product portfolio includes a range of optical and electro-mechanical components, such as reconfigurable optical add-drop multiplexers, optical amplifiers, transceivers, and sensors, which are used in data centers, computing clusters, and other applications.

From a technical analysis perspective, Fabrinets stock has been exhibiting a bullish trend, with its current price of $234.95 positioned above its 20-day and 50-day moving averages. The stocks relative strength index (RSI) is not provided, but its average true range (ATR) of 9.12 indicates a moderate level of volatility. With resistance levels at $268.6 and $236.6, and support levels at $202.8 and $179.2, the stock is likely to face a test of its resistance levels in the near term.

Using the available technical and fundamental data, a forecast for Fabrinets stock can be made. Given its current price and the SMA20, SMA50, and SMA200 values, a potential target price could be around $250-$260, representing a 6-10% increase from current levels. However, this forecast is contingent upon the companys ability to continue delivering strong financial performance, as indicated by its return on equity (RoE) of 17.83%. With a market capitalization of $8.34 billion and a price-to-earnings (P/E) ratio of 25.96, Fabrinet is well-positioned to capitalize on the growing demand for its services and products.

Based on the analysis, a potential trading strategy could involve buying Fabrinets stock on dips towards the $229-$230 level, with a target price of $250-$260 and a stop-loss at $220. This strategy is contingent upon the stocks ability to break through the resistance level at $236.6 and sustain its upward momentum.