Zacks Equity Research
1 min read
Fortinet (FTNT) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, FTNT crossed above the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock’s price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock’s price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
FTNT has rallied 9.2% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests FTNT could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account FTNT’s positive earnings estimate revisions. There have been 14 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors may want to watch FTNT for more gains in the near future given the company’s key technical level and positive earnings estimate revisions.
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Fortinet, Inc. (FTNT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
