Trade-Ideas LLC identified

Fabrinet

(

FN

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Fabrinet as such a stock due to the following factors:

  • FN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.7 million.
  • FN has traded 4,407 shares today.
  • FN is trading at a new lifetime high.

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More details on FN:

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, medical devices, and sensors. FN has a PE ratio of 22. Currently there are 6 analysts that rate Fabrinet a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Fabrinet has been 363,800 shares per day over the past 30 days. Fabrinet has a market cap of $1.1 billion and is part of the consumer goods sector and consumer durables industry. Shares are up 28.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Fabrinet as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 0.2%. Since the same quarter one year prior, revenues rose by 23.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FN's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, FN has a quick ratio of 2.00, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 125.00% and other important driving factors, this stock has surged by 48.47% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 126.9% when compared to the same quarter one year prior, rising from $8.73 million to $19.80 million.
  • Net operating cash flow has increased to $19.17 million or 29.77% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.87%.

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