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Fortinet (FTNT) Gains As Market Dips: What You Should Know
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Fortinet (FTNT - Free Report) closed at $51.76 in the latest trading session, marking a +1.31% move from the prior day. This change outpaced the S&P 500's 0.02% loss on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.44%.
Prior to today's trading, shares of the network security company had gained 5.23% over the past month. This has lagged the Computer and Technology sector's gain of 11.1% and outpaced the S&P 500's gain of 4.57% in that time.
Investors will be hoping for strength from Fortinet as it approaches its next earnings release, which is expected to be February 7, 2023. The company is expected to report EPS of $0.39, up 56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.29 billion, up 33.99% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% lower. Fortinet is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Fortinet's current valuation metrics, including its Forward P/E ratio of 37.18. For comparison, its industry has an average Forward P/E of 27.62, which means Fortinet is trading at a premium to the group.
Investors should also note that FTNT has a PEG ratio of 2.07 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. FTNT's industry had an average PEG ratio of 2.13 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 162, which puts it in the bottom 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Fortinet (FTNT) Gains As Market Dips: What You Should Know
Fortinet (FTNT - Free Report) closed at $51.76 in the latest trading session, marking a +1.31% move from the prior day. This change outpaced the S&P 500's 0.02% loss on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.44%.
Prior to today's trading, shares of the network security company had gained 5.23% over the past month. This has lagged the Computer and Technology sector's gain of 11.1% and outpaced the S&P 500's gain of 4.57% in that time.
Investors will be hoping for strength from Fortinet as it approaches its next earnings release, which is expected to be February 7, 2023. The company is expected to report EPS of $0.39, up 56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.29 billion, up 33.99% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% lower. Fortinet is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Fortinet's current valuation metrics, including its Forward P/E ratio of 37.18. For comparison, its industry has an average Forward P/E of 27.62, which means Fortinet is trading at a premium to the group.
Investors should also note that FTNT has a PEG ratio of 2.07 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. FTNT's industry had an average PEG ratio of 2.13 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 162, which puts it in the bottom 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.