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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 $118.20, moving +0.16% from the previous trading session. This change lagged the S&P 500's 0.52% gain on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.21%.

Prior to today's trading, shares of the network security company had lost 8.63% over the past month. This has lagged the Computer and Technology sector's gain of 0.89% and the S&P 500's gain of 0.49% in that time.

Investors will be hoping for strength from FTNT as it approaches its next earnings release. On that day, FTNT is projected to report earnings of $0.77 per share, which would represent year-over-year growth of 14.93%. Our most recent consensus estimate is calling for quarterly revenue of $638.56 million, up 16.63% from the year-ago period.

FTNT's full-year Zacks Consensus Estimates are calling for earnings of $3.05 per share and revenue of $2.53 billion. These results would represent year-over-year changes of +23.48% and +17.48%, respectively.

Investors should also note any recent changes to analyst estimates for FTNT. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.81% higher. FTNT currently has a Zacks Rank of #3 (Hold).

Investors should also note FTNT's current valuation metrics, including its Forward P/E ratio of 38.66. This represents a no noticeable deviation compared to its industry's average Forward P/E of 38.66.

Also, we should mention that FTNT has a PEG ratio of 2.76. 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 was holding an average PEG ratio of 2.45 at yesterday's closing price.

The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 26% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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