My favorite photonics trade is $Fabrinet(FN.US).
$Lumentum(LITE.US) and $Coherent Corp.(COHR.US) are great businesses but the valuations are stretched quite a bit. Fabrinet trades at roughly a third of LITE's P/S ratio and builds the actual modules those two companies sell.PEG is 2 and P/S is around 7. Stock is up 118% over the past year but still fundamentals tell me there is a lot of room to run. For context, When a hyperscaler like $Nebius(NBIS.US) orders optics, the purchase order eventually lands at a factory in Thailand with Fabrinet's name on the door. That is the part of the supply chain. FN is on my watchlist and I am looking for a pullback to start a position. Lets watch ER closely.Source: First Fellow
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