Fortinet (FTNT) closed at $98.04 in the latest trading session, marking a +0.94% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.82%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 1.77%.
Coming into today, shares of the network security company had lost 2.04% in the past month. In that same time, the Computer and Technology sector gained 1.43%, while the S&P 500 gained 0.8%.
Market participants will be closely following the financial results of Fortinet in its upcoming release. The company’s earnings per share (EPS) are projected to be $0.60, reflecting a 17.65% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.59 billion, indicating a 12.61% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.23 per share and a revenue of $5.89 billion, representing changes of +36.81% and +11.02%, respectively, from the prior year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.21% higher. Fortinet currently has a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Fortinet is currently being traded at a Forward P/E ratio of 43.59. This represents a premium compared to its industry’s average Forward P/E of 34.65.
Investors should also note that FTNT has a PEG ratio of 2.39 right now. 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 2.41 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% of all 250+ industries.
