The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Fabrinet (FN – Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock’s year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Fabrinet is one of 655 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Fabrinet is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for FN’s full-year earnings has moved 9.4% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the latest available data, FN has gained about 9.9% so far this year. Meanwhile, the Computer and Technology sector has returned an average of -32.5% on a year-to-date basis. This means that Fabrinet is performing better than its sector in terms of year-to-date returns.
One other Computer and Technology stock that has outperformed the sector so far this year is i3 Verticals (IIIV – Free Report) . The stock is up 7.7% year-to-date.
The consensus estimate for i3 Verticals’ current year EPS has increased 43.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Fabrinet belongs to the Electronics – Miscellaneous Components industry, a group that includes 28 individual stocks and currently sits at #163 in the Zacks Industry Rank. On average, stocks in this group have lost 26.8% this year, meaning that FN is performing better in terms of year-to-date returns.
i3 Verticals, however, belongs to the Internet – Software industry. Currently, this 150-stock industry is ranked #59. The industry has moved -60% so far this year.
Fabrinet and i3 Verticals could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.