Fabrinet stock trades under the ticker FN & has shown recent bullishness that traders should take a closer look at.
FN stock closed at $111.21/share on 11/1/2021, after a 13%+ gap up day.
Fabrinet FN Stock’s Technical Performance Broken Down
FN Stock Price: $111.21
10 Day Moving Average: $98.41
50 Day Moving Average: $102.17
200 Day Moving Average: $92.88
RSI: 69
MACD: -0.406
Fabrinet’s stock completed a bullish MACD crossover yesterday, on a 13%+ gap up day.
FN crossed over its 50 Day Moving Average, with ~4% difference between the 10 & 50 Day MAs that will provide additional support.
While their RSI is approaching overbought, over the next few days that will settle down as they establish a new range.
The next level to watch for will be $115.53, which was yesterday’s high.
Fabrinet FN Stock As A Long-Term Investment
Investors may be interested in FN stock, particularly their P/E (ttm) of 24.3.
FN stock’s P/B is 3.2, with a Beta of 1.02, showing that they tend to move in line with the broader markets.
Fabrinet’s Quarterly Revenue Growth Y-o-Y is 25.8%, and their balance sheet also looks healthy.
With Total Cash (mrq) of $547.9M & Total Debt (mrq) of $45.96M, FN looks to be a healthy investment.
While they do not offer a dividend yield, they still attract a lot of institutional investors, with 96% of their share float being held by them.
Fabrinet FN Stock As A Short-Term Trade Using Options
Short-term oriented traders can use options to take advantage of FN stock’s current momentum, while protecting themselves against volatility.
I am looking at the 11/19 expiration dated contracts.
The $105, $110 & $115 strike price calls all look appealing, although they have very low levels of open interest, which is to be expected as they were <$100/share for the last month until yesterday.
There is very low open interest on the puts side, but I would be looking to the $115 & $120 strike price there, should there be contracts written in the meantime, otherwise perhaps look towards the 12/17 expiration date.
Tying It All Together
Overall, it looks like Fabrinet’s stock is well worth taking a closer look at for all types of market participants.
As an investment, they look fairly valued & have a solid looking balance sheet.
In the near-term, they should continue to push higher after yesterday’s strong performance.
FN stock is worth doing more research into as both a trade & an investment.
*** I DO NOT OWN SHARES OF FN STOCK ***