We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fortinet (FTNT) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Fortinet (FTNT - Free Report) closed at $51.94 in the latest trading session, marking a +0.13% move from the prior day. The stock lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.02%.
Prior to today's trading, shares of the network security company had lost 2.02% over the past month. This has was narrower than the Computer and Technology sector's loss of 12.4% and the S&P 500's loss of 7.95% in that time.
Investors will be hoping for strength from Fortinet as it approaches its next earnings release. On that day, Fortinet is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 35%. Our most recent consensus estimate is calling for quarterly revenue of $1.12 billion, up 29.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.05 per share and revenue of $4.38 billion. These totals would mark changes of +31.25% and +31.06%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Fortinet. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% higher. Fortinet is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Fortinet's current valuation metrics, including its Forward P/E ratio of 49.48. This represents a premium compared to its industry's average Forward P/E of 44.63.
Meanwhile, FTNT's PEG ratio is currently 2.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security was holding an average PEG ratio of 2.52 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FTNT in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Fortinet (FTNT) Gains But Lags Market: What You Should Know
Fortinet (FTNT - Free Report) closed at $51.94 in the latest trading session, marking a +0.13% move from the prior day. The stock lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.02%.
Prior to today's trading, shares of the network security company had lost 2.02% over the past month. This has was narrower than the Computer and Technology sector's loss of 12.4% and the S&P 500's loss of 7.95% in that time.
Investors will be hoping for strength from Fortinet as it approaches its next earnings release. On that day, Fortinet is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 35%. Our most recent consensus estimate is calling for quarterly revenue of $1.12 billion, up 29.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.05 per share and revenue of $4.38 billion. These totals would mark changes of +31.25% and +31.06%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Fortinet. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% higher. Fortinet is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Fortinet's current valuation metrics, including its Forward P/E ratio of 49.48. This represents a premium compared to its industry's average Forward P/E of 44.63.
Meanwhile, FTNT's PEG ratio is currently 2.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security was holding an average PEG ratio of 2.52 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FTNT in the coming trading sessions, be sure to utilize Zacks.com.