Fabrinet saw its IBD SmartSelect Composite Rating jump to 97 Thursday, up from 93 the day before.
The new score indicates the company is now outperforming 97% of all stocks in terms of the most important fundamental and technical stock-picking criteria. The market's biggest winners often have a 95 or higher rating in the early stages of a new price run, so that's a good starting point when looking for the best stocks to buy and watch.
Fabrinet is currently forming a cup with handle, with a 270.01 buy point. Look for the stock to break out in volume at least 40% higher than normal. Keep in mind that it's a later-stage base, and such bases are more prone to failure.
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The stock has a 97 EPS Rating, which means its recent quarterly and annual earnings growth tops 97% of all stocks.
Its Accumulation/Distribution Rating of C shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks.
The company reported 20% EPS growth for Q1. Revenue growth climbed 17%, up from 15% in the prior quarter. That marks four consecutive reports with rising growth.
Fabrinet earns the No. 2 rank among its peers in the Electronics-Contract Manufacturing industry group. Celestica is the top-ranked stock within the group.
