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Fortinet (FTNT) Gains But Lags Market: What You Should Know

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Fortinet (FTNT - Free Report) closed the most recent trading day at $117.11, moving +1.46% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.02%. Elsewhere, the Dow gained 1.6%, while the tech-heavy Nasdaq added 2.71%.

Heading into today, shares of the network security company had lost 8.82% over the past month, lagging the Computer and Technology sector's loss of 0.91% and the S&P 500's loss of 0.39% in that time.

Wall Street will be looking for positivity from FTNT as it approaches its next earnings report date. The company is expected to report EPS of $0.77, up 14.93% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $638.56 million, up 16.63% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.05 per share and revenue of $2.53 billion. These totals would mark changes of +23.48% and +17.48%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for FTNT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 3.81% higher. FTNT is currently a Zacks Rank #3 (Hold).

Investors should also note FTNT's current valuation metrics, including its Forward P/E ratio of 37.81. This represents a no noticeable deviation compared to its industry's average Forward P/E of 37.81.

Investors should also note that FTNT has a PEG ratio of 2.7 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Security stocks are, on average, holding a PEG ratio of 2.44 based on yesterday's closing prices.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 127, putting it in the top 50% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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