The Vanguard Russell 2000 ETF is outperforming the S&P 500 with an 18% year-to-date gain, driven by domestic-focused small-cap companies benefiting from U.S. government policies and AI infrastructure demand. However, rising inflation and anticipated interest rate hikes pose a significant risk, as 32% of Russell 2000 companies carry floating-rate debt that will become more expensive, potentially hampering their growth and earnings.

Three communications equipment companies—Lumentum Holdings, Applied Optoelectronics, and Ondas Holdings—have each delivered over 1,000% returns in the past year, significantly outpacing Nvidia's 75% gain. Lumentum and Applied Optoelectronics benefit from hyperscaler datacenter buildouts requiring optical components, while Ondas focuses on industrial communications and defense-adjacent autonomy. Wall Street analyst consensus remains mixed, with some targets lagging current prices, particularly for Applied Optoelectronics which shows 35% implied downside.

Fabrinet reported strong Q3 results with earnings per share of $3.72 (beating consensus of $3.56 by 4.49%) and revenue of $1.21 billion (exceeding the $1.18 billion estimate). Despite the earnings beat and record financial results, the stock fell 10.84% to $640 in after-hours trading. The company provided Q4 guidance with adjusted EPS of $3.72-$3.87 and revenue of $1.25-$1.29 billion.

The Vanguard Russell 2000 ETF is outperforming major U.S. indexes in 2026 with an 11.1% return year-to-date. Small-cap companies in the Russell 2000 are more insulated from geopolitical risks as they conduct most business domestically, while large-cap tech-heavy indexes face headwinds from global instability. The Russell's diversified sector composition and exposure to beneficiaries of U.S. government policies position it to continue outperforming in 2026.

Ten large-cap stocks were top performers last week, with First Majestic Silver leading gains at 25.23% following better-than-expected Q4 results. Other notable gainers include Moderna (19.68%) on FDA seasonal flu vaccine review news, Global Payments (19.52%) with strong Q4 earnings and a $2.6B buyback authorization, and Coinbase (11.32%). Companies like Omnicom, Garmin, Figma, and Pan American Silver also reported strong quarterly results and positive guidance.

Fabrinet announced it will release its second quarter fiscal year 2026 financial results on February 2, 2026, after market close, followed by a management conference call and webcast at 5:00 p.m. EST. The company is a leading provider of advanced optical packaging and precision manufacturing services to OEMs of complex products.

Fabrinet, a leading provider of advanced optical packaging and manufacturing services, announced that its management will present virtually at the Rosenblatt Securities 5th Annual Technology Summit on June 10, 2025.

Fabrinet, an optical equipment specialist, reported strong Q3 2025 results, with revenue up 19% year-over-year. However, its adjusted net income missed analyst estimates, leading to a 7% stock drop despite the overall positive performance.

Fabrinet reported strong Q3 FY25 results, but its Q4 FY25 EPS guidance was slightly below consensus despite a higher revenue outlook. Rosenblatt raised the price target, citing Fabrinet's attractive outlook in the Telecom sector and potential contract wins with major players.

Fabrinet, a manufacturer of precision optical equipment, announced a strategic partnership with Amazon in which the tech giant will purchase Fabrinet stock. This partnership could propel Fabrinet's sales growth as Amazon scales its AI operations.

Fabrinet, an optics equipment specialist, saw its stock rise 8% on Tuesday after an analyst at Fox Advisors initiated coverage with an outperform rating and a $270 price target, citing the company's consistent performance and strong position in the attractive optical communications market.

Fabrinet reported strong Q2 FY25 results, beating estimates on revenue and earnings. However, the company noted a moderation in datacom demand, though it remains optimistic about future growth. Fabrinet also expanded its share buyback program.