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Recent trading has been somewhat rough for the cybersecurity industry. The space has suffered through a couple of weak earnings reports, and some investors are wavering on the long-term potential of this market.
However, that sort of thinking could prove to be extremely short-sighted, as the segment remains in-focus thanks to political issues, and the growing need for cybersecurity among a variety of companies. Investors probably should just zero-in on the best in the group for outsized returns in this uncertain time, and that puts the focus on Fortinet (FTNT - Free Report) .
Why Fortinet?
Fortinet is a California-based cybersecurity software company, specializing in products and solutions for threat detection and defense in the world of data and communications. It is one of the larger players in the network security market, and it has a market capitalization over $6 billion.
The company, unlike some of its peers, is riding a nice run following its most recent earnings report, and is in a great position for growth in the months ahead too. In fact, FTNT has seen three straight earnings beats, including two straight over 100%.
This has translated into some solid price performance in recent weeks, but trading as of late has been a bit sluggish. It appears, however, that this weak recent trading is largely due to other companies in the cyber market which have disappointed on the earnings front. This is especially evident if we take a look at FTNT’s fundamentals, as they are still impressive and warrant attention from investors too.
FTNT Fundamentals
In terms of growth prospects, Fortinet is tough to beat. Its current projected EPS growth comes in at an impressive 35%, more than double its industry’s average rate of growth. Meanwhile, its projected sales growth comes in at 16%, while cash flow growth is north of 55%, so Fortinet is clearly doing an excellent job from a growth perspective.
Analysts also appear to be on board with the positive story here, as current year and next year earnings estimates have been on the rise, and they are looking for double digit EPS growth too. This has also allowed the consensus estimate to move higher over the past few months for both the current year and the next year, putting Fortinet in a tremendous position to recapture old highs in the near future.
No wonder FTNT gets an ‘A’ Grade for Growth, and why the company also receives a Zacks Rank #1 (Strong Buy) too.
Bottom Line
Cybersecurity has had a rocky couple of weeks thanks to some sluggish earnings reports in a few bellwether names. However, the entire space isn’t in a rut, as there are plenty of promising companies out there in this important market.
Fortinet is a perfect example of this. The company has great growth prospects, while its earnings estimates have been trending in the right direction too. So, if you are looking for a better choice in the cyber world these days, definitely give FTNT a closer look, as it could be among the best-positioned for strength in what is likely to be a make-or-break year for many companies in the cyber security market.
Now see our private trades
Today's Bull of the Day is a promising buy that we're sharing with the public. Now would you like to look behind the curtain and view all our private portfolios? Starting today, for the next month, you can follow them in real time from value to momentum . . . from stocks under $10 to ETF and option plays . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even be privy to portfolios so exclusive that they are normally closed to new investors. Click here for all Zacks moves >>
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Bull of the Day: Fortinet (FTNT)
Recent trading has been somewhat rough for the cybersecurity industry. The space has suffered through a couple of weak earnings reports, and some investors are wavering on the long-term potential of this market.
However, that sort of thinking could prove to be extremely short-sighted, as the segment remains in-focus thanks to political issues, and the growing need for cybersecurity among a variety of companies. Investors probably should just zero-in on the best in the group for outsized returns in this uncertain time, and that puts the focus on Fortinet (FTNT - Free Report) .
Why Fortinet?
Fortinet is a California-based cybersecurity software company, specializing in products and solutions for threat detection and defense in the world of data and communications. It is one of the larger players in the network security market, and it has a market capitalization over $6 billion.
The company, unlike some of its peers, is riding a nice run following its most recent earnings report, and is in a great position for growth in the months ahead too. In fact, FTNT has seen three straight earnings beats, including two straight over 100%.
This has translated into some solid price performance in recent weeks, but trading as of late has been a bit sluggish. It appears, however, that this weak recent trading is largely due to other companies in the cyber market which have disappointed on the earnings front. This is especially evident if we take a look at FTNT’s fundamentals, as they are still impressive and warrant attention from investors too.
FTNT Fundamentals
In terms of growth prospects, Fortinet is tough to beat. Its current projected EPS growth comes in at an impressive 35%, more than double its industry’s average rate of growth. Meanwhile, its projected sales growth comes in at 16%, while cash flow growth is north of 55%, so Fortinet is clearly doing an excellent job from a growth perspective.
Analysts also appear to be on board with the positive story here, as current year and next year earnings estimates have been on the rise, and they are looking for double digit EPS growth too. This has also allowed the consensus estimate to move higher over the past few months for both the current year and the next year, putting Fortinet in a tremendous position to recapture old highs in the near future.
Fortinet, Inc. 12 Month EPS
Fortinet, Inc. 12 Month EPS | Fortinet, Inc. Quote
No wonder FTNT gets an ‘A’ Grade for Growth, and why the company also receives a Zacks Rank #1 (Strong Buy) too.
Bottom Line
Cybersecurity has had a rocky couple of weeks thanks to some sluggish earnings reports in a few bellwether names. However, the entire space isn’t in a rut, as there are plenty of promising companies out there in this important market.
Fortinet is a perfect example of this. The company has great growth prospects, while its earnings estimates have been trending in the right direction too. So, if you are looking for a better choice in the cyber world these days, definitely give FTNT a closer look, as it could be among the best-positioned for strength in what is likely to be a make-or-break year for many companies in the cyber security market.
Now see our private trades
Today's Bull of the Day is a promising buy that we're sharing with the public. Now would you like to look behind the curtain and view all our private portfolios? Starting today, for the next month, you can follow them in real time from value to momentum . . . from stocks under $10 to ETF and option plays . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even be privy to portfolios so exclusive that they are normally closed to new investors. Click here for all Zacks moves >>