Fabrinet saw its IBD SmartSelect Composite Rating jump to 96 Tuesday, up from 94 the day before.
The upgrade means the stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. The market's biggest winners often have a 95 or higher rating in the early stages of a new price run, so that's a good item to have on your checklist when looking for the best stocks to buy and watch.
Fabrinet is currently forming a consolidation, with a 278.38 entry. Look for the stock to break out in volume at least 40% higher than normal. Keep in mind that it's a later-stage base, and such bases are more prone to failure.
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The stock sports a 97 EPS Rating, which means its recent quarterly and longer-term annual earnings growth tops 97% of all stocks.
Its Accumulation/Distribution Rating of D- shows moderate selling by institutional investors over the last 13 weeks. Look for the rating to improve to at least a C or better.
The company posted a 20% earnings-per-share gain for Q1. Top line growth increased 17%, up from 15% in the prior quarter. That marks four quarters of rising growth. The company's next quarterly report is expected on or around Feb. 3.
Fabrinet holds the No. 2 rank among its peers in the Electronics-Contract Manufacturing industry group. Celestica is the No. 1-ranked stock within the group.
