Fabrinet's stock price falls as MACD and KDJ indicators trigger death cross and bearish marubozu patterns.
ByAinvest
Tuesday, Sep 30, 2025 10:20 am ET1min read
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The automotive segment, which delivered $128 million, benefited from robust demand for electric vehicle (EV) charging infrastructure and advanced sensors. Fabrinet's focus on EV charging components positions it to capitalize on the accelerating electrification trend. Meanwhile, industrial lasers added $40 million, contributing to steady growth from automation and processing equipment [1].
Fabrinet's diversification strategy has not only expanded its revenue base but also broadened its exposure to secular growth themes that are less cyclical than communications. 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% [1].
However, recent technical indicators suggest a bearish trend for Fabrinet's stock. The 15-minute chart for Fabrinet's stock exhibited a MACD Death Cross, KDJ Death Cross, and a bearish Marubozu at 09/30/2025 10:15. These signals suggest that the stock price has the potential to continue falling, as the momentum has shifted towards the downside .
Fabrinet faces stiff competition from Jabil (JBL) and Coherent (COHR), both of which are expanding in adjacent markets. Jabil has been strengthening its presence in automotive and industrial solutions, while Coherent remains a key player in industrial lasers and optics [1]. Despite this competition, Fabrinet's focus on precision electro-mechanical components and EV charging infrastructure provides a differentiated positioning that could support sustained growth momentum.
From a valuation standpoint, Fabrinet's stock is currently trading at a forward 12-month Price/Sales ratio of 3.06X compared to the industry's 2.08X. The Zacks Consensus Estimate for Fabrinet's first-quarter fiscal 2026 earnings is pegged at $2.83 per share, indicating 18.41% year-over-year growth [1].
Fabrinet's 15-minute chart has recently exhibited a MACD Death Cross, KDJ Death Cross, and a bearish Marubozu at 09/30/2025 10:15. This suggests that the stock price has the potential to continue falling, as the momentum of the stock price has shifted towards the downside and there is a potential for further decreases. Sellers currently control the market, and it is likely that bearish momentum will continue.
Fabrinet's (FN) strategic push into manufacturing markets beyond optical communications has yielded substantial results. In the fourth quarter of fiscal 2025, non-optical communications revenues reached $221 million, marking a 41% year-over-year increase. This growth was driven by strong contributions from the automotive and industrial laser segments [1].The automotive segment, which delivered $128 million, benefited from robust demand for electric vehicle (EV) charging infrastructure and advanced sensors. Fabrinet's focus on EV charging components positions it to capitalize on the accelerating electrification trend. Meanwhile, industrial lasers added $40 million, contributing to steady growth from automation and processing equipment [1].
Fabrinet's diversification strategy has not only expanded its revenue base but also broadened its exposure to secular growth themes that are less cyclical than communications. 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% [1].
However, recent technical indicators suggest a bearish trend for Fabrinet's stock. The 15-minute chart for Fabrinet's stock exhibited a MACD Death Cross, KDJ Death Cross, and a bearish Marubozu at 09/30/2025 10:15. These signals suggest that the stock price has the potential to continue falling, as the momentum has shifted towards the downside .
Fabrinet faces stiff competition from Jabil (JBL) and Coherent (COHR), both of which are expanding in adjacent markets. Jabil has been strengthening its presence in automotive and industrial solutions, while Coherent remains a key player in industrial lasers and optics [1]. Despite this competition, Fabrinet's focus on precision electro-mechanical components and EV charging infrastructure provides a differentiated positioning that could support sustained growth momentum.
From a valuation standpoint, Fabrinet's stock is currently trading at a forward 12-month Price/Sales ratio of 3.06X compared to the industry's 2.08X. The Zacks Consensus Estimate for Fabrinet's first-quarter fiscal 2026 earnings is pegged at $2.83 per share, indicating 18.41% year-over-year growth [1].
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