Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth S ...

Core Viewpoint - Fabrinet (FN) has shown a downtrend recently, losing 8.1% over the past four weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be exhausting, which could lead to a reversal in the stock's downtrend [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a new low, buying interest has emerged to push the stock price up towards the opening price [4][5]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for FN, with a 9.8% increase in the consensus EPS estimate for the current year over the last 30 days, indicating that analysts expect better earnings than previously predicted [7][8]. - The company currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10]. - The Zacks Rank serves as a timing indicator, suggesting that FN's prospects are beginning to improve, reinforcing the potential for a turnaround [10].

Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Fabrinet (FN) is identified as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company specializes in assembling optical, electro-mechanical, and electronic devices for other companies [3] Group 2: Earnings Growth - Fabrinet has a historical EPS growth rate of 24.6%, with projected EPS growth of 21.2% this year, surpassing the industry average of 18.9% [5] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Fabrinet is 12.6%, significantly higher than the industry average of -14.2% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 20.6%, compared to the industry average of 5.1% [7] Group 4: Earnings Estimate Revisions - Current-year earnings estimates for Fabrinet have been revised upward, with the Zacks Consensus Estimate increasing by 0.7% over the past month [8] Group 5: Investment Potential - Fabrinet has achieved a Growth Score of B and a Zacks Rank 2, indicating it is a potential outperformer and a solid choice for growth investors [10]

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 Overview: Fabrinet (FN) - Fabrinet currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [2][3] - The company specializes in assembling optical, electro-mechanical, and electronic devices for other companies [3] Price Performance - Over the past week, FN shares have increased by 13.25%, outperforming the Zacks Electronics - Miscellaneous Components industry, which rose by 2.74% [5] - In a longer timeframe, FN's shares have gained 24.82% over the past quarter and 62.27% over the last year, while the S&P 500 has only increased by 6.56% and 15.83%, respectively [6] Trading Volume - FN's average 20-day trading volume is 445,047 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, one earnings estimate for FN has increased, raising the consensus estimate from $12.19 to $12.33 [9] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions during the same period [9] Conclusion - Given the positive price trends and earnings outlook, FN is positioned as a strong momentum pick with a Momentum Score of B and a Zacks Rank of 2 (Buy) [11]

Costco Wholesale (COST) 2025 Update Summary Industry and Company Overview - The call pertains to Costco Wholesale, a leading retail company, focusing on its sales results for August 2025 and providing forward-looking statements regarding its performance and market conditions [1][2]. Core Points and Arguments - **Sales Performance**: - Net sales for August 2025 reached $21.56 billion, marking an increase of 8.7% from $19.83 billion in August 2024 [2]. - Comparable sales growth was reported as follows: - US: 6.1% - Canada: 6.8% - Other International: 6.7% - Total Company: 6.3% - E-commerce: 18.4% [2][3]. - **Comparable Sales Excluding Gas and FX**: - US: 6.7% - Canada: 9.4% - Other International: 5.3% - Total Company: 6.9% - E-commerce: 18.3% [3]. - **Traffic Growth**: - Comparable traffic increased by 4% globally and 4.3% in the US [3]. - **Impact of Foreign Currencies**: - The US dollar's fluctuations affected sales: - Canada: -1.2% - Other International: +1.7% - Total Company: +0.1% [4]. - **Gas Price Deflation**: - Gas price deflation negatively impacted total reported comparable sales by approximately -0.6%, with the average worldwide selling price per gallon down by about -5.2% year-over-year [4]. - **Average Transaction Value**: - The average transaction value increased by 2.2% worldwide, and by 2.7% when excluding gas deflation and foreign exchange impacts [4]. Regional and Merchandising Highlights - **Regional Performance**: - Strongest comparable sales in the US were observed in the Midwest, Southeast, and Northwest regions. - Internationally, Australia, Taiwan, and the UK showed the best results [5]. - **Cannibalization Impact**: - The negative impact of cannibalization on total company sales was approximately -60 basis points [5]. - **Merchandising Categories**: - Food and sundries showed positive mid-single-digit growth. - Fresh foods increased by mid to high single digits, with strong performance in meat and produce. - Non-foods experienced high single-digit growth, particularly in jewelry, majors, and garden categories. - Ancillary business sales rose by low single digits, with optical, pharmacy, and hearing aids being top performers. - Gas sales declined by mid-single digits due to price changes [6][7]. Future Outlook - The September reporting period will cover five weeks from September 1 to October 5, 2025. - Q4 and total year FY 2025 earnings will be released on September 25, 2025, with a conference call scheduled for 2 PM PT [8]. Additional Information - The call will remain available until 4 PM Pacific Time on September 11, 2025 [9].

Core Viewpoint - The article highlights Fabrinet as a promising growth stock, supported by its strong earnings growth, cash flow growth, and positive earnings estimate revisions, making it a suitable choice for growth investors [2][10]. Group 1: Earnings Growth - Fabrinet has a historical EPS growth rate of 25.6%, with projected EPS growth of 17.5% for the current year, surpassing the industry average of 15.9% [5][4]. Group 2: Cash Flow Growth - The year-over-year cash flow growth for Fabrinet is 14.4%, significantly higher than the industry average of -14% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 17.1%, compared to the industry average of 5.1% [7]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Fabrinet have been revised upward, with the Zacks Consensus Estimate increasing by 3.6% over the past month [8]. - This positive trend in earnings estimate revisions contributes to Fabrinet's Zacks Rank of 2 (Buy) [10]. Group 4: Overall Positioning - Fabrinet's combination of a Growth Score of B and a Zacks Rank of 2 positions it well for potential outperformance in the market, making it an attractive option for growth investors [10].

Core Viewpoint - Fabrinet (FN) is positioned to potentially continue its earnings-beat streak in the upcoming report, supported by its strong historical performance in earnings surprises [1]. Company Performance - Fabrinet has a track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 3.00% [2]. - In the last reported quarter, Fabrinet achieved earnings of $2.52 per share, surpassing the Zacks Consensus Estimate of $2.47 per share, resulting in a surprise of 2.02% [3]. - For the previous quarter, the company was expected to report earnings of $2.51 per share but delivered $2.61 per share, yielding a surprise of 3.98% [3]. Earnings Estimates and Predictions - Estimates for Fabrinet have been trending upward, aided by its history of earnings surprises [6]. - The stock currently has a positive Zacks Earnings ESP of +1.14%, indicating increased analyst optimism regarding its near-term earnings potential [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong likelihood of another earnings beat [9]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [7]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8].