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

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In the latest trading session, Fortinet (FTNT - Free Report) closed at $301.53, marking a +0.32% move from the previous day. This change lagged the S&P 500's 0.85% gain on the day.

Heading into today, shares of the network security company had gained 0.65% over the past month, lagging the Computer and Technology sector's gain of 1.96% and outpacing the S&P 500's loss of 0.37% in that time.

FTNT will be looking to display strength as it nears its next earnings release. On that day, FTNT is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 6.82%. Meanwhile, our latest consensus estimate is calling for revenue of $809.71 million, up 24.36% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.87 per share and revenue of $3.24 billion, which would represent changes of +15.52% and +24.83%, respectively, from the prior 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.

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 remained stagnant within the past month. FTNT is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that FTNT has a Forward P/E ratio of 77.64 right now. This represents a premium compared to its industry's average Forward P/E of 56.97.

It is also worth noting that FTNT currently has a PEG ratio of 5.45. 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. FTNT's industry had an average PEG ratio of 2.76 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 24% 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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