Fabrinet (FN) is a Great Momentum Stock: Should You Buy?

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Summary: Fabrinet (FN) - Fabrinet currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance [3] - Over the past week, FN shares increased by 6.69%, while the Zacks Electronics - Miscellaneous Components industry remained flat [5] - In a longer timeframe, FN shares rose by 44.92% over the past quarter and 24.41% over the last year, outperforming the S&P 500's gains of 19.69% and 14.71%, respectively [6] - The average 20-day trading volume for FN is 504,074 shares, indicating a bullish sign with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for FN has increased, while none have decreased, raising the consensus estimate from $10.15 to $10.16 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [9] Conclusion - Considering the momentum indicators and earnings outlook, FN is classified as a 2 (Buy) stock with a Momentum Score of A, making it a strong candidate for near-term investment [11]