Fiber optics stocks plunged recently. But don’t fret. It’s an opportunity. One oversold optics stock to consider trading is Fabrinet (FN), notes Lucas Downey, co-founder of MoneyFlows.
The $16.5 billion market cap firm specializes in precise manufacturing and packaging of optical components, transceivers, and advanced electronics. The company recently announced Q4 earnings that were stellar. However, the stock fell an incredible 25% in a matter of days.
During the earnings call, management highlighted that manufacturing capacity is expanding aggressively, targeting a $12.5 billion – $14 billion run-rate over the next several years. The company pointed to data center segment growth being the primary driver into 2027. In fiscal 2027, sales are estimated to reach $6 billion…then soar to $9.4 billion in FY 2029.
From our lens, another liquidation is occurring right now for no fundamental reason. Plus, the company sports a rock-solid fundamental rating of 87.5%, even as the technical score has plummeted to 41%.
Note the massive inflows (left) in the first half of the year…and how only recently we’ve noted outflows. More importantly on the right, many instances on our Outlier 20 report reveal that this is a high-caliber name with institutional sponsorship.
Bottom line: Don’t let summertime shenanigans bounce you out of great stocks. The optics theme isn’t stopping anytime soon.
Recommended Action: Buy FN.
