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Fortinet (FTNT) Up 142% YTD: Will the Rally Continue in 2022?
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Fortinet (FTNT - Free Report) stock has outperformed the Zacks Security industry as well as S&P 500 in the year-to-date (YTD) period. The stock has gained 142.2% so far this year compared with the Security and benchmark index’s rally of 60.8% and 28.6%, respectively.
The stock’s price rally reflects the company’s robust fundamentals. Therefore, if you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio now.
The company has performed brilliantly so far this year and has the potential to carry on the momentum in 2022 as well.
Image Source: Zacks Investment Research
What’s Driving Fortinet Stock Higher?
Fortinet has been benefiting from the rising demand for security and networking products amid the ongoing pandemic crisis as a huge global workforce has opted to work remotely. It has been gaining from robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network (SD-WAN) offerings.
According to International Data Corporation, Fortinet holds a market share of approximately 14.3% in the network security appliances market as of September 2021 and ranks third in Unified Threat Management (UTM) in terms of revenues. Given the company’s sustained focus on enhancing its UTM portfolio through product development and acquisitions, we believe it will continue to increase its market share in the segment and retain the leadership position.
As the pandemic-led work from home trend continues to boost the SD-WAN market, the company keeps pace with its mission-critical solutions to maintain and expand its market share in the cyber security space. The growing adoption of SD-WAN solutions is anticipated to be a key growth driver for the company in the long run.
The latest Futuriom report predicts that the market size for SD-WAN solutions could reach $4.6 billion by 2023 from $2.6 billion in 2021, witnessing a CAGR of 34%. As there are only a few vendors that offer security and SD-WAN solution, Fortinet is well-positioned to capitalize on the increasing opportunities in the market.
Solid Rank & Growth Expectations
Fortinet carries a Zacks Rank #3 (Hold) currently.
The Zacks Consensus Estimate of $4.64 for2022 earnings suggests growth of approximately 19.2% from the year-ago period. The long-term earnings per share growth rate is estimated to be 15%.
Fortinet has an impressive earnings surprise history. The company outpaced earnings estimates in each of the trailing four quarters, the average surprise being 8.9%.
Analysts have raised the estimates for 2021 and 2022 over the past 60 days, reflecting their confidence in the company. During the same period, the Zacks Consensus Estimate for 2021 and 2022 moved north by 2 cents and 14 cents, respectively.
Stocks to Consider
Some better-ranked stocks from the broader computer and technology sector include the largest global Customer Relationship Management vendor Salesforce (CRM - Free Report) , flaunting a Zacks Rank #1 (Strong Buy), Advanced Micro Devices (AMD - Free Report) and EPAM Systems (EPAM - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Salesforce’s fourth-quarter fiscal 2022 earnings has been revised downward by 7.6% to 73 cents per share over the past 30 days. For fiscal 2022, earnings estimates have moved upward by 28 cents to $4.68 per share in the last 30 days.
Salesforce’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 44.2%. CRM stock has appreciated 14.8% YTD.
The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 7 cents to 75 cents per share over the past 90 days. For 2021, earnings estimates have moved north by 0.38% to $2.65 per share in the past 30 days.
Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 58.3% in the YTD period.
The consensus mark for EPAM’s fourth-quarter 2021 earnings has been revised upward to $2.50 per share from $2.36 over the past 60 days. For fiscal 2021, earnings estimates have been revised upward by 38 cents to $8.78 per share in the last 60 days.
EPAM’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.2%. Shares of EPAM have soared 87.9% YTD.
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Fortinet (FTNT) Up 142% YTD: Will the Rally Continue in 2022?
Fortinet (FTNT - Free Report) stock has outperformed the Zacks Security industry as well as S&P 500 in the year-to-date (YTD) period. The stock has gained 142.2% so far this year compared with the Security and benchmark index’s rally of 60.8% and 28.6%, respectively.
The stock’s price rally reflects the company’s robust fundamentals. Therefore, if you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio now.
The company has performed brilliantly so far this year and has the potential to carry on the momentum in 2022 as well.
What’s Driving Fortinet Stock Higher?
Fortinet has been benefiting from the rising demand for security and networking products amid the ongoing pandemic crisis as a huge global workforce has opted to work remotely. It has been gaining from robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network (SD-WAN) offerings.
According to International Data Corporation, Fortinet holds a market share of approximately 14.3% in the network security appliances market as of September 2021 and ranks third in Unified Threat Management (UTM) in terms of revenues. Given the company’s sustained focus on enhancing its UTM portfolio through product development and acquisitions, we believe it will continue to increase its market share in the segment and retain the leadership position.
As the pandemic-led work from home trend continues to boost the SD-WAN market, the company keeps pace with its mission-critical solutions to maintain and expand its market share in the cyber security space. The growing adoption of SD-WAN solutions is anticipated to be a key growth driver for the company in the long run.
The latest Futuriom report predicts that the market size for SD-WAN solutions could reach $4.6 billion by 2023 from $2.6 billion in 2021, witnessing a CAGR of 34%. As there are only a few vendors that offer security and SD-WAN solution, Fortinet is well-positioned to capitalize on the increasing opportunities in the market.
Solid Rank & Growth Expectations
Fortinet carries a Zacks Rank #3 (Hold) currently.
The Zacks Consensus Estimate of $4.64 for2022 earnings suggests growth of approximately 19.2% from the year-ago period. The long-term earnings per share growth rate is estimated to be 15%.
Fortinet has an impressive earnings surprise history. The company outpaced earnings estimates in each of the trailing four quarters, the average surprise being 8.9%.
Analysts have raised the estimates for 2021 and 2022 over the past 60 days, reflecting their confidence in the company. During the same period, the Zacks Consensus Estimate for 2021 and 2022 moved north by 2 cents and 14 cents, respectively.
Stocks to Consider
Some better-ranked stocks from the broader computer and technology sector include the largest global Customer Relationship Management vendor Salesforce (CRM - Free Report) , flaunting a Zacks Rank #1 (Strong Buy), Advanced Micro Devices (AMD - Free Report) and EPAM Systems (EPAM - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Salesforce’s fourth-quarter fiscal 2022 earnings has been revised downward by 7.6% to 73 cents per share over the past 30 days. For fiscal 2022, earnings estimates have moved upward by 28 cents to $4.68 per share in the last 30 days.
Salesforce’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 44.2%. CRM stock has appreciated 14.8% YTD.
The Zacks Consensus Estimate for Advanced Micro Devices’ fourth-quarter 2021 earnings has been revised upward by 7 cents to 75 cents per share over the past 90 days. For 2021, earnings estimates have moved north by 0.38% to $2.65 per share in the past 30 days.
Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14%. Shares of AMD have rallied 58.3% in the YTD period.
The consensus mark for EPAM’s fourth-quarter 2021 earnings has been revised upward to $2.50 per share from $2.36 over the past 60 days. For fiscal 2021, earnings estimates have been revised upward by 38 cents to $8.78 per share in the last 60 days.
EPAM’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 7.2%. Shares of EPAM have soared 87.9% YTD.