A 9-Day Losing Streak Has Fabrinet Stock Down 29%
Fabrinet (FN) stock has fallen for 9 consecutive trading days, losing 28.6% over that stretch. That erased about $5.1 billion from the company’s market value, which now stands at about $12.7 billion. The stock closed at $355.48 on Tuesday, October 20, its lowest close of the past year.
The Streak Next To The S&P 500
Returns for FN and the S&P 500 over the streak and the periods around it, all ending Tuesday, October 20 and including dividends:
| Return Period | FN | S&P 500 |
|---|---|---|
| 1 Day | -2.0% | 0.3% |
| 9 Days (Current Streak) | -28.6% | -1.1% |
| 1 Month (21 Trading Days) | -11.5% | -0.6% |
| 3 Months (63 Trading Days) | -30.8% | 3.1% |
| Year To Date | -21.9% | 13.7% |
| 1 Year (252 Trading Days) | -13.3% | 17.1% |
Is This Move About Fabrinet Or The Market?
Over the same 9 trading days, the S&P 500 returned -1.1% 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 30.8%, a window that includes the streak; over the other 54 sessions of that window it was down 3.1%.
Is The Business As Weak As The Stock?
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 26.9 times trailing earnings against a median of 34.4. On these numbers the business looks sturdier than the stock, with revenue growth above the median and a multiple below the median.
If the drop has you weighing an entry, resist buying on price alone. Our Buy the Dip screen ranks the marked-down names where growth and cash generation still hold up.
A Slide Like This Is Why Diversification Exists
Watching one stock fall day after day is the clearest lesson the market teaches about single-name risk. Whether this particular decline is an opportunity or a warning, the deeper point is the same: no one name should be able to do this to your portfolio.
The Trefis High Quality (HQ) Portfolio is built on that principle: roughly 30 businesses selected for consistent cash generation, strong margins, and resilient balance sheets, sized and rebalanced with rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Study the slide; spread the risk.