When looking for the best stocks to buy and watch, focus on those with rising relative price strength.
One stock that fits that bill is Fabrinet stock, which saw a welcome improvement to its Relative Strength (RS) Rating on Wednesday, rising from 75 to 96.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength. IBD's proprietary rating measures price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.
Decades of market research shows that the market's biggest winners often have an 80 or better RS Rating at the beginning of a new run.
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Is Fabrinet Stock A Buy?
Fabrinet stock soared 32% on upbeat earnings for fiscal fourth quarter of 2023. The stock has moved more than 5% past a 134.95 entry in a first-stage flat base, meaning it's extended and now out of a proper buy range. Look for the stock to offer a new chance to get in like a three-weeks tight or pullback to the 50-day or 10-week moving average.
The company produces components, lasers, and subsystems for a variety of blue-chip customers. It reported 11% earnings growth last quarter. Sales rose 12%.
Fabrinet stock holds the No. 3 rank among its peers in the Electronics-Contract Manufacturing industry group. Celestica, Fabrinet and Jabil are among the top 5 highly rated stocks within the group.
