Fabrinet's 15min chart triggers MACD Death Cross, Bearish Marubozu indicator.
ByAinvest
Monday, Sep 22, 2025 2:03 pm ET1min read
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The MACD Death Cross, a bearish signal, occurs when the MACD line crosses below the signal line. This indicates a potential reversal in the stock's upward trend. The Bearish Marubozu candle, characterized by a lack of shadows, suggests strong selling pressure with no resistance at higher levels. Both indicators point to a potential trend reversal and continued downward pressure on Fabrinet's stock price.
Fabrinet's performance in the fourth quarter of fiscal 2025 highlights its growing exposure to Data Center Interconnect (DCI) revenues, which reached $107 million, accounting for 26% of telecom revenues and 12% of total revenues. The company's focus on high-precision optical packaging and compact, high-bandwidth modules positions it well to capitalize on the growing demand for AI and cloud workloads. However, the recent indicators suggest that the market may not be fully supportive of Fabrinet's growth prospects in the near term [1].
Fabrinet's stock has appreciated 74.3% year-to-date (YTD), outperforming peers like Jabil (JBL) and Coherent (COHR), which have seen YTD gains of 55.9% and 15.2%, respectively. Despite the strong YTD performance, Fabrinet's stock has been trading above its 50-day and 200-day moving averages, indicating a bullish trend. However, the recent indicators suggest a potential shift in market sentiment [2].
Fabrinet's stock is currently overvalued, trading at a forward 12-month Price/Sales ratio of 3.01X compared to the industry's 2.08X. The company's Value Score is D, indicating that its shares are overvalued. Fabrinet's 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 (JBL) and Coherent (COHR) trade at 21.43X and 26.61X, respectively, at meaningful discounts to Fabrinet [2].
Given the recent indicators and valuation metrics, Fabrinet's stock may not present an attractive entry point for investors. The company's long-term prospects remain strong, supported by its diversified portfolio and strength in next-generation optics. However, the near-term outlook is constrained by component shortages and margin pressure. Investors should monitor the stock's performance and wait for a more favorable point to accumulate the stock [2].
Based on Fabrinet's 15-minute chart, the MACD Death Cross and Bearish Marubozu indicators have been triggered at 09/22/2025 14:00. This suggests that the stock price has the potential to continue declining, with sellers dominating the market and bearish momentum likely to persist.
Fabrinet's (FN) stock price has shown signs of continued decline following the triggering of the MACD Death Cross and Bearish Marubozu indicators on the 15-minute chart as of September 22, 2025, at 14:00. These indicators suggest that the stock price may continue to fall, with sellers dominating the market and bearish momentum likely to persist [1].The MACD Death Cross, a bearish signal, occurs when the MACD line crosses below the signal line. This indicates a potential reversal in the stock's upward trend. The Bearish Marubozu candle, characterized by a lack of shadows, suggests strong selling pressure with no resistance at higher levels. Both indicators point to a potential trend reversal and continued downward pressure on Fabrinet's stock price.
Fabrinet's performance in the fourth quarter of fiscal 2025 highlights its growing exposure to Data Center Interconnect (DCI) revenues, which reached $107 million, accounting for 26% of telecom revenues and 12% of total revenues. The company's focus on high-precision optical packaging and compact, high-bandwidth modules positions it well to capitalize on the growing demand for AI and cloud workloads. However, the recent indicators suggest that the market may not be fully supportive of Fabrinet's growth prospects in the near term [1].
Fabrinet's stock has appreciated 74.3% year-to-date (YTD), outperforming peers like Jabil (JBL) and Coherent (COHR), which have seen YTD gains of 55.9% and 15.2%, respectively. Despite the strong YTD performance, Fabrinet's stock has been trading above its 50-day and 200-day moving averages, indicating a bullish trend. However, the recent indicators suggest a potential shift in market sentiment [2].
Fabrinet's stock is currently overvalued, trading at a forward 12-month Price/Sales ratio of 3.01X compared to the industry's 2.08X. The company's Value Score is D, indicating that its shares are overvalued. Fabrinet's 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 (JBL) and Coherent (COHR) trade at 21.43X and 26.61X, respectively, at meaningful discounts to Fabrinet [2].
Given the recent indicators and valuation metrics, Fabrinet's stock may not present an attractive entry point for investors. The company's long-term prospects remain strong, supported by its diversified portfolio and strength in next-generation optics. However, the near-term outlook is constrained by component shortages and margin pressure. Investors should monitor the stock's performance and wait for a more favorable point to accumulate the stock [2].
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