In the latest market close, Fortinet (FTNT – Free Report) reached $101.28, with a -0.43% movement compared to the previous day. The stock’s change was less than the S&P 500’s daily gain of 0.55%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.7%.
Shares of the network security company witnessed a loss of 2.86% over the previous month, beating the performance of the Computer and Technology sector with its loss of 8.51% and the S&P 500’s loss of 5.56%.
The upcoming earnings release of Fortinet will be of great interest to investors. On that day, Fortinet is projected to report earnings of $0.53 per share, which would represent year-over-year growth of 23.26%. Our most recent consensus estimate is calling for quarterly revenue of $1.54 billion, up 13.52% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.45 per share and a revenue of $6.76 billion, demonstrating changes of +3.38% and +13.49%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Fortinet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there’s been a 3.31% rise in the Zacks Consensus EPS estimate. Currently, Fortinet is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Fortinet is currently exchanging hands at a Forward P/E ratio of 41.56. Its industry sports an average Forward P/E of 61.65, so one might conclude that Fortinet is trading at a discount comparatively.
It’s also important to note that FTNT currently trades at a PEG ratio of 3.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. FTNT’s industry had an average PEG ratio of 3.11 as of yesterday’s close.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 60, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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