Fabrinet(US:FN) ZACKS·2026-02-06 18:02Core Viewpoint - Fabrinet (FN) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are closely correlated with near-term stock price movements [2][3]. - Institutional investors rely on earnings estimates to determine the fair value of stocks, leading to significant price movements when they adjust their positions based on these estimates [3]. Company Performance and Outlook - The upgrade for Fabrinet indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - For the fiscal year ending June 2026, Fabrinet is projected to earn $13.58 per share, with a 2.5% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Fabrinet's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].