Fabrinet Stock Extends A 7-Day Losing Streak To A 27% Loss
Shares of Fabrinet (FN) have closed lower in each of the last 7 sessions, a cumulative decline of 27.0%. That erased about $4.8 billion from the company’s market value, which now stands at about $13.0 billion. The stock closed at $363.51 on Friday, October 16, its lowest close of the past year.
How The Streak Stacks Up Against The S&P 500
Returns for FN and the S&P 500 over the streak and the periods around it, all ending Friday, October 16 and including dividends:
| Return Period | FN | S&P 500 |
|---|---|---|
| 1 Day | -5.6% | -1.1% |
| 7 Days (Current Streak) | -27.0% | -1.8% |
| 1 Month (21 Trading Days) | -4.6% | 0.4% |
| 3 Months (63 Trading Days) | -26.5% | 3.2% |
| Year To Date | -20.2% | 12.9% |
| 1 Year (252 Trading Days) | -8.7% | 16.2% |
A Stock-Specific Slide, Or A Market Move?
Over the same 7 trading days, the S&P 500 returned -1.8% including dividends, so the slide is mostly Fabrinet’s own story rather than the market’s. Over the past three months the stock is down 26.5%, a window that includes the streak; over the other 56 sessions of that window it was essentially flat (+0.8%).
Do The Fundamentals Justify The Selling?
On the fundamentals, revenue grew 35.7% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; its operating margin is 10.0%, versus a median of 21.6%; and the stock trades at 27.5 times trailing earnings against a median of 34.0. The selling is hard to square with the fundamentals: revenue growth above the median and a multiple below the median.
A slide like this raises an obvious follow-up: which marked-down stocks are actually worth buying? Our Buy the Dip screen runs that test every day, flagging beaten-down names whose fundamentals still hold up.
Falling Prices Test Conviction. Rules Do Not Flinch
A losing streak forces a choice on every holder: sell into weakness, average down, or freeze. All three are emotional answers to what should be an analytical question, and decisions made that way tend to be expensive ones.
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