This firm's average rating is Buy from 5 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Fabrinet market sentiment investors' perception of the future value of Fabrinet. Let us look at a few aspects of Fabrinet technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Fabrinet. In general, sophisticated investors focus on analyzing Fabrinet stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Fabrinet's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Fabrinet's intrinsic value. In addition to deriving basic predictive indicators for Fabrinet, many experienced traders also check how macroeconomic factors affect Fabrinet price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Fabrinet's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Fabrinet. Your research has to be compared to or analyzed against Fabrinet's peers to derive any actionable benefits. When done correctly, Fabrinet's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Fabrinet.
How does Fabrinet Stands against Peers?
Analyzing Fabrinet competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Fabrinet across multiple sectors and
thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out
Fabrinet Competition DetailsFabrinet Gross Profit
Fabrinet Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Fabrinet previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Fabrinet Gross Profit growth over the last 10 years. Please check Fabrinet's
gross profit and other
fundamental indicators for more details.
Closer look at Fabrinet Downside Variance
Fabrinet has current Downside Variance of 6.82. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.
Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.
Downside Variance | = | SUM(RET DEV)2 N(ER) |
| = | 6.82 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N(ER) | = | Number of points with returns less than expected return for the period |
Let's now compare Fabrinet Downside Variance to its closest peers:
| FN | 6.82 |
| MU | 9.97 |
| DSWL | 5.49 |
| ELTK | 21.17 |
Our take on Fabrinet small slide
Market Risk Adjusted Performance just dropped to -3.13, may entail upcoming price decline. Fabrinet currently demonstrates below-verage downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.42. However, we do advice investors to further question Fabrinet expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Whereas other entities in the electronic equipment industry are either recovering or due for a correction, Fabrinet may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 17th of August 2020, we see that Fabrinet moves indifferently to market moves. The company is
overvalued with
very low probability of distress within the next 24 months. Our actual 30 days Buy-Hold-Sell recommendation on the company is
Cautious Hold.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Fabrinet. Please refer to our
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