How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Fortinet (
FTNT Quick Quote FTNT - Free Report) ten years ago? It may not have been easy to hold on to FTNT for all that time, but if you did, how much would your investment be worth today? Fortinet's Business In-Depth
With that in mind, let's take a look at Fortinet's main business drivers.
Headquartered in Sunnyvale, CA, Fortinet, Inc. is a provider of network security appliances and Unified Threat Management (UTM) network security solutions to enterprises, service providers and government entities worldwide.
Its solutions are designed to integrate multiple levels of security protection, including firewall, virtual private networking (VPN), antivirus, intrusion prevention (IP), web filtering, anti-spam and wide area network (WAN) acceleration. Through its products and subscription services, the company provides integrated protection against dynamic security threats while simplifying the IT security infrastructure. Its solutions incorporate application-specific integrated circuits, hardware architecture, operating system, and associated security and networking functions to defend against multiple categories of IT security attacks without impacting network performance. The company’s network security gateways protect customer data, reduce security complexities and lower the total cost of ownership. Customers are able to implement their security policies on traffic between internal networks and the Internet, as well as between internal and private networks shared with partners. Its flagship UTM solution consists of the FortiGate appliance product line and FortiGuard security subscription services. Its products and services are sold through a network of more than 20,000 channel partners worldwide, including distributors, resellers, value-added resellers and managed service providers. The company caters to more than 450,000 customers worldwide that includes most of the Fortune 100 companies. The company derives a significant portion of total sales from the top 10 biggest distributors, of which Exclusive Networks Group has the highest share and accounted for 31% of 2021 total revenues followed by Ingram Micro’s 12%. Fortinet reported revenues of $3.34 billion in 2021, which increased 29% from 2020. Product revenue was $1.26 billion, up 37% while Service revenue of $2.09 billion improved 24% year over year in 2021. The company faces significant competition with Palo Alto Networks, CyberArk, Qualys and Cisco in the network security as well as cloud security space. Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Fortinet ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2012 would be worth $14,856.44, or a gain of 1,385.64%, as of June 3, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 226.81% and the price of gold increased 10.70% over the same time frame in comparison.
Analysts are forecasting more upside for FTNT too.
Fortinet is benefiting from rising demand for security and networking products amid coronavirus crisis as a huge global workforce is working remotely. It is also benefiting from robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network (SD-WAN) offerings. Moreover, continued deal wins, especially those of high value, are a key driver. Higher IT spending on cybersecurity is further expected to aid Fortinet to grow faster than the security market. Also, focus on enhancing its unified threat management (UTM) portfolio through product development and acquisitions is a tailwind for Fortinet. However, intensifying competition due to increasing consolidation in the security industry poses concerns. Increased hiring, mostly in sales and marketing, and mergers & acquisitions spends remain overhangs on margin.
The stock is up 6.57% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2022. The consensus estimate has moved up as well.