Fabrinet's 15min chart shows KDJ Golden Cross and Bullish Marubozu signal.

Based on the 15-minute chart for Fabrinet, a bullish indicator has been triggered, as evidenced by the KDJ Golden Cross and Bullish Marubozu at 09/29/2025 12:15. This suggests that the momentum of the stock price is shifting towards the upside and has the potential to further increase. The control of buyers in the market is evident, and it is likely that bullish momentum will continue.

Fabrinet's (FN) strategic push into manufacturing markets beyond optical communications is yielding substantial results, as evidenced by the company's robust performance in its automotive and industrial laser segments. Non-optical communications revenues reached $221 million in the fourth quarter of fiscal 2025, representing a 41% year-over-year increase, demonstrating the effectiveness of Fabrinet's diversification strategy Is FN's Diversification Beyond Optics Poised to Drive Further Upside?^[1].

Automotive remained the largest contributor, delivering $128 million on robust demand for electric vehicle charging infrastructure and advanced sensors. By concentrating on EV charging components rather than traditional auto parts, Fabrinet is positioned to capitalize on the accelerating electrification trend while leveraging its precision electro-mechanical expertise. Industrial lasers added $40 million, providing steady contributions from automation and processing equipment. Together with medical and metrology applications, these markets broaden Fabrinet’s exposure to secular growth themes that are less cyclical than communications.

The 41% non-optical growth outpaced overall revenue expansion, suggesting the company’s ability to capture market share in adjacent verticals. The Zacks Consensus Estimate for the first-quarter fiscal 2026 non-optical revenues is pegged at $231 million, indicating a year-over-year increase of 29.8%. With strength across automotive, lasers, and medical markets, Fabrinet’s diversification beyond optics looks well-positioned to fuel further upside Is FN's Diversification Beyond Optics Poised to Drive Further Upside?^[1].

Fabrinet Faces Stiff Competition
Fabrinet faces competition from Jabil (JBL) and Coherent (COHR), both of which are also expanding in adjacent markets. Jabil has been strengthening its presence in automotive and industrial solutions, leveraging its large-scale manufacturing capabilities to capture demand from the electrification and automation trends. Coherent, meanwhile, remains a key player in industrial lasers and optics, benefiting from rising adoption in advanced manufacturing and healthcare. Compared with Jabil and Coherent, Fabrinet’s focus on precision electro-mechanical components and EV charging infrastructure provides a differentiated positioning that could support sustained growth momentum Is FN's Diversification Beyond Optics Poised to Drive Further Upside?^[1].

Fabrinet’s Share Price Performance, Valuation and Estimates
Fabrinet’s shares have jumped 66.8% in the year-to-date (YTD) period, outperforming the Zacks Electronics-Miscellaneous Components industry and the Zacks Computer and Technology sector’s increase of 40% and 22.6%, respectively. From a valuation standpoint, Fabrinet stock is currently trading at a forward 12-month Price/Sales ratio of 3.06X compared with the industry’s 2.08X. Fabrinet has a Value Score of D. The Zacks Consensus Estimate for Fabrinet’s first-quarter fiscal 2026 earnings is pegged at $2.83 per share, unchanged over the past 30 days. The estimate indicates 18.41% year-over-year growth Is FN's Diversification Beyond Optics Poised to Drive Further Upside?^[1].

Fabrinet's YTD Performance
Fabrinet shares have appreciated 74.3% year to date (YTD), outpacing the Zacks Electronics – Miscellaneous Components industry’s advance of 38.9% and the Zacks Computer and Technology sector’s return of 19.8%. The surge has been supported by strong momentum in telecom and Data Center Interconnect (DCI) products, alongside the ramp of 1.6-terabit transceivers. Fabrinet shares have outperformed peers like Jabil and Coherent, which are up 55.9% and 15.2% YTD, respectively, though they trail Celestica (CLS), which has surged 174% Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[2].

Fabrinet's strategic portfolio evolution positions the company for sustained growth and expansion. Optical communications revenue increased 15% year over year to $689.92 million, showcasing balanced growth between telecom operations and datacom operations. Non-optical communications contributed $231 million, representing 41% year-over-year growth through automotive and industrial laser applications. The product portfolio's evolution toward next-generation technologies underpins growth acceleration. DCI products, now generating $107 million quarterly with 45% year-over-year growth, capitalize directly on artificial intelligence infrastructure buildouts. The transition to higher-speed optical products proves particularly compelling, with 800-gigabit and faster products achieving $313 million in revenues, up 32% sequentially. Volume production of 1.6-terabit transceivers positions Fabrinet at the technological frontier, providing competitive differentiation as customers migrate to higher bandwidth solutions Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[2].

For the first quarter of fiscal 2026, Fabrinet expects revenues between $910 million and $950 million. At the midpoint of the projected range, revenues are expected to increase 24% year over year, but only 2% sequentially from the June quarter’s $910 million, reflecting near-term supply constraints. The Zacks Consensus Estimate for revenues is pegged at $936.17 million, indicating modest 16.41% year-over-year growth. Fabrinet projects non-GAAP earnings of $2.75-$2.90 per share. The outlook factors in margin headwinds of 10-20 basis points from annual compensation resets and inefficiencies tied to multiple new program ramps Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[2].

Fabrinet Shares Are Overvalued
Fabrinet shares are overvalued as indicated by a Value Score of D. The stock trades at 31.74X forward 12-month earnings, above the Zacks Electronics – Miscellaneous Components industry’s 22.74X and the Zacks Computer and Technology sector’s 29.52X. Among peers, Jabil trades at 21.43X and Coherent at 26.61X, both at meaningful discounts to Fabrinet. Celestica, at 43.03X, remains the clear outlier in the group as investors assign a higher premium for its deeper leverage to artificial intelligence programs Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[2].

Conclusion
Fabrinet’s diversified portfolio and strength in next-generation optics support its long-term prospects. However, first-quarter fiscal 2026 guidance reflects component shortages and margin pressure that may limit near-term performance. After a 74% year-to-date rally, much of the upside from optical ramps and data center interconnect demand already appears captured in the valuation. Trading at a premium to the industry and the sector, the stock does not offer an attractive entry point at current levels. Fabrinet currently has a Zacks Rank #3 (Hold), which implies 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?^[2].