Fabrinet's 15min Chart Triggers MACD Death Cross, KDJ Death Cross: Weakness Ahead.

Fabrinet's 15-minute chart exhibits a significant technical indicator, as the Moving Average Convergence Divergence (MACD) has crossed below its signal line, signaling a potential shift in momentum towards the downside. Additionally, the KDJ indicator has also crossed below its signal line, further reinforcing this bearish sentiment. As of September 25, 2025, at 09:45, these indicators suggest that the stock price has the potential to continue declining, and further decreases may be anticipated.

Fabrinet (FN) has experienced a notable 74.3% year-to-date (YTD) appreciation, significantly outperforming its industry peers and sector averages. The company's strong performance has been driven by robust growth in telecom and Data Center Interconnect (DCI) products, particularly in 1.6-terabit transceivers Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1].

However, recent technical indicators suggest a potential shift in momentum. As of September 25, 2025, at 09:45, the Moving Average Convergence Divergence (MACD) has crossed below its signal line, signaling a potential downtrend Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1]. Additionally, the KDJ indicator has also crossed below its signal line, reinforcing the bearish sentiment Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1]. These indicators suggest that the stock price may continue to decline, and further decreases may be anticipated.

Fabrinet's fourth-quarter fiscal 2025 performance demonstrated strategic portfolio evolution, positioning the company for sustained growth and expansion. The company's optical communications revenue increased 15% year-over-year, showcasing balanced growth between telecom and datacom operations Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1]. The product portfolio's evolution toward next-generation technologies, such as DCI products and higher-speed optical products, supports the company's growth acceleration.

Despite these positive fundamentals, Fabrinet's first-quarter fiscal 2026 guidance highlights potential constraints. The company expects revenues between $910 million and $950 million, reflecting near-term supply constraints and margin pressure Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1]. The Zacks Consensus Estimate for earnings is pegged at $2.83 per share, indicating modest 18.41% year-over-year growth.

Fabrinet shares are currently overvalued, trading at 31.74X forward 12-month earnings, above the industry average of 22.74X and the sector average of 29.52X Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1]. The stock's premium valuation, amplified by a 74% YTD rally, may limit near-term performance.

Given the technical bearish signals and potential near-term constraints, investors should exercise caution. Fabrinet currently has a Zacks Rank #3 (Hold), suggesting that investors should wait for a more favorable point to accumulate the stock Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1].