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Fortinet (FTNT) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Fortinet (FTNT - Free Report) closed at $106.35, marking a -0.83% move from the previous day. This change lagged the S&P 500's 0.03% gain on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.1%.

Prior to today's trading, shares of the network security company had gained 3.27% over the past month. This has outpaced the Computer and Technology sector's gain of 2.71% and the S&P 500's gain of 1.82% in that time.

Investors will be hoping for strength from FTNT as it approaches its next earnings release. In that report, analysts expect FTNT to post earnings of $0.70 per share. This would mark year-over-year growth of 18.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $600.78 million, up 18.5% from the year-ago period.

FTNT's full-year Zacks Consensus Estimates are calling for earnings of $2.41 per share and revenue of $2.14 billion. These results would represent year-over-year changes of +30.98% and +18.75%, respectively.

It is also important to note the recent changes to analyst estimates for FTNT. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. FTNT is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, FTNT is holding a Forward P/E ratio of 44.5. This represents a no noticeable deviation compared to its industry's average Forward P/E of 44.5.

Investors should also note that FTNT has a PEG ratio of 3.18 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security industry currently had an average PEG ratio of 2.29 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow FTNT in the coming trading sessions, be sure to utilize Zacks.com.


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