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Fortinet (FTNT) Dips More Than Broader Market: What You Should Know

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In the latest market close, Fortinet (FTNT - Free Report) reached $57.94, with a -0.87% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.06%.

Shares of the network security company witnessed a gain of 0.29% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.47% and the S&P 500's gain of 1.96%.

Analysts and investors alike will be keeping a close eye on the performance of Fortinet in its upcoming earnings disclosure. The company's earnings report is set to go public on August 6, 2024. On that day, Fortinet is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 7.89%. Simultaneously, our latest consensus estimate expects the revenue to be $1.4 billion, showing an 8.44% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and a revenue of $5.79 billion, representing changes of +7.98% and +9.22%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Fortinet. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.18% increase. Fortinet is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Fortinet has a Forward P/E ratio of 33.28 right now. Its industry sports an average Forward P/E of 30.41, so one might conclude that Fortinet is trading at a premium comparatively.

It's also important to note that FTNT currently trades at a PEG ratio of 2.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. FTNT's industry had an average PEG ratio of 1.78 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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