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Fortinet (FTNT) Outpaces Stock Market Gains: What You Should Know
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Fortinet (FTNT - Free Report) closed at $65.81 in the latest trading session, marking a +1.54% move from the prior day. This change outpaced the S&P 500's 0.57% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.33%.
Coming into today, shares of the network security company had gained 10.9% in the past month. In that same time, the Computer and Technology sector gained 7.94%, while the S&P 500 gained 1.72%.
Wall Street will be looking for positivity from Fortinet as it approaches its next earnings report date. In that report, analysts expect Fortinet to post earnings of $0.28 per share. This would mark year-over-year growth of 47.37%. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 25.71% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.41 per share and revenue of $5.41 billion, which would represent changes of +18.49% and +22.36%, respectively, from the prior year.
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.
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 has moved 0.27% higher within the past month. Fortinet is currently a Zacks Rank #2 (Buy).
In terms of valuation, Fortinet is currently trading at a Forward P/E ratio of 46.1. This represents a premium compared to its industry's average Forward P/E of 30.17.
Investors should also note that FTNT has a PEG ratio of 2.56 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. The Security industry currently had an average PEG ratio of 2.38 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 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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Fortinet (FTNT) Outpaces Stock Market Gains: What You Should Know
Fortinet (FTNT - Free Report) closed at $65.81 in the latest trading session, marking a +1.54% move from the prior day. This change outpaced the S&P 500's 0.57% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.33%.
Coming into today, shares of the network security company had gained 10.9% in the past month. In that same time, the Computer and Technology sector gained 7.94%, while the S&P 500 gained 1.72%.
Wall Street will be looking for positivity from Fortinet as it approaches its next earnings report date. In that report, analysts expect Fortinet to post earnings of $0.28 per share. This would mark year-over-year growth of 47.37%. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 25.71% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.41 per share and revenue of $5.41 billion, which would represent changes of +18.49% and +22.36%, respectively, from the prior year.
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.
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 has moved 0.27% higher within the past month. Fortinet is currently a Zacks Rank #2 (Buy).
In terms of valuation, Fortinet is currently trading at a Forward P/E ratio of 46.1. This represents a premium compared to its industry's average Forward P/E of 30.17.
Investors should also note that FTNT has a PEG ratio of 2.56 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. The Security industry currently had an average PEG ratio of 2.38 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 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.