Back to top

Image: Bigstock

Fortinet Stock Soars 69% in 6 Months: Is it a Good Time to Invest?

Read MoreHide Full Article

Fortinet's (FTNT - Free Report) shares have surged 68.8% over the trailing six months, outperforming the Zacks Computer & Technology sector’s appreciation of 14.8% and the Zacks Internet - Software industry’s return of 31.5%.

FTNT has outperformed its competitors in the cybersecurity market, such as Cisco Systems (CSCO - Free Report) , Palo Alto Networks (PANW - Free Report) and Check Point Software Technologies (CHKP - Free Report) .

Cisco Systems competes in networking and security solutions, Palo Alto Networks focuses on internet software, and Check Point Software Technologies specializes in security services.

Over the trailing six months, shares of Cisco Systems, Palo Alto Networks and Check Point Software Technologies have risen 31.5%, 16.5% and 6%, respectively.

FTNT's shares are benefiting from strong demand for its cybersecurity solutions, driven by the robust Fortinet Security Fabric platform and its cloud-based or SaaS offerings. The company's broad product portfolio, AI-driven capabilities and growth in security subscriptions have significantly contributed to the positive movement in its share price.

FTNT Expands With Strong Platform & Major Wins

Fortinet’s Secure Networking solutions integrate networking and security through FortiOS, supporting functions across physical, virtual, cloud and SaaS options. Powered by the ASIC technology, Fortinet delivers up to 5x better performance than competitors. Fortinet’s offerings include secure service edge, SD-WAN, network firewalls and enterprise wireless infrastructure.

FTNT's flagship product, FortiGate, continues to experience robust adoption, playing a key role in driving the company's revenue growth. The strong demand for FortiGate and its associated security solutions underscores its contribution to Fortinet's financial success.

In the third quarter of 2024, Unified SASE made up 23% of FTNT's business, driven by strong secured billings and a 130% surge in the pipeline. Fortinet stands as the only vendor offering a complete SASE solution within a single FortiOS platform, enabling quick deployment for SD-WAN customers and ensuring enhanced data privacy for service providers.

Fortinet plans to announce GenAI for FortiAI in early 2025, aiming to enhance its AI-based security operations. This initiative reflects the company's commitment to integrating generative AI across its product portfolio and advancing network security innovation.

In the third quarter of 2024, FTNT secured a 7-figure upsell deal with a retail customer, expanding its SD-WAN deployment to include FortiSASE for 16,000 users. The deal underscores Fortinet’s ability to drive value through its FortiOS platform, which delivers simplicity, streamlined management and consistent security.

A multi-national bank secured an eight-figure deal with FTNT to protect its hybrid architecture using FortiGate firewalls and other solutions. The bank valued FortiOS's integrated security, visibility and automated response, showcasing Fortinet's strength in safeguarding large-scale enterprises.

FTNT Gives Positive 2024 View

For the fourth quarter of 2024, Fortinet expects revenues between $1.56 billion and $1.62 billion. Non-GAAP earnings are expected to be 58-62 cents per share.

The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $1.59 billion, indicating year-over-year growth of 12.59%.

The consensus mark for the bottom line is pegged at 60 cents per share, unchanged over the past 30 days. The consensus mark indicates a year-over-year increase of 17.65%.

For 2024, revenues are projected between $5.86 billion and $5.92 billion, and non-GAAP earnings are expected to be $2.20-$2.28 per share.

The Zacks Consensus Estimate for revenues is pegged at $5.89 billion, indicating year-over-year growth of 11.01%.

The consensus mark for earnings is pegged at $2.24 per share, up by a penny over the past 30 days. The estimate indicates year-over-year growth of 37.42%.

FTNT has a long history of reporting strong quarterly performance, with earnings surpassing the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 23.58%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Zacks Rank

Fortinet’s cutting-edge AI security solutions and expanding customer base position it for strong growth.

FTNT currently has a Zacks Rank #2 (Buy) and a Growth Score of A — a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in