Has Fabrinet (FN) Outpaced Other Computer and Technology Stocks This Year?

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. Is Fabrinet (FN) one of those stocks right now? A quick glance at the company’s year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Fabrinet is one of 607 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Fabrinet is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for FN’s full-year earnings has moved 3.3% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, FN has moved about 8.7% on a year-to-date basis. Meanwhile, stocks in the Computer and Technology group have gained about 2.1% on average. This means that Fabrinet is performing better than its sector in terms of year-to-date returns.

Another Computer and Technology stock, which has outperformed the sector so far this year, is Hewlett Packard Enterprise (HPE). The stock has returned 2.3% year-to-date.

In Hewlett Packard Enterprise’s case, the consensus EPS estimate for the current year increased 1.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Fabrinet belongs to the Electronics – Miscellaneous Components industry, which includes 26 individual stocks and currently sits at #164 in the Zacks Industry Rank. On average, this group has gained an average of 5% so far this year, meaning that FN is performing better in terms of year-to-date returns.

In contrast, Hewlett Packard Enterprise falls under the Computer – Integrated Systems industry. Currently, this industry has 12 stocks and is ranked #77. Since the beginning of the year, the industry has moved +9.8%.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Fabrinet and Hewlett Packard Enterprise as they could maintain their solid performance.

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