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Fortinet (FTNT) Outpaces Stock Market Gains: What You Should Know
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Fortinet (FTNT - Free Report) closed the most recent trading day at $71.86, moving +1.05% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 1.26%.
Prior to today's trading, shares of the network security company had gained 6.79% over the past month. This has outpaced the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.31% in that time.
Investors will be hoping for strength from Fortinet as it approaches its next earnings release. The company is expected to report EPS of $0.34, up 41.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.3 billion, up 26.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.46 per share and revenue of $5.46 billion, which would represent changes of +22.69% and +23.64%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Fortinet. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Fortinet is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Fortinet is currently trading at a Forward P/E ratio of 48.6. This represents a premium compared to its industry's average Forward P/E of 40.68.
Meanwhile, FTNT's PEG ratio is currently 2.7. 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 Internet - Software industry currently had an average PEG ratio of 1.78 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 the most recent trading day at $71.86, moving +1.05% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 1.26%.
Prior to today's trading, shares of the network security company had gained 6.79% over the past month. This has outpaced the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.31% in that time.
Investors will be hoping for strength from Fortinet as it approaches its next earnings release. The company is expected to report EPS of $0.34, up 41.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.3 billion, up 26.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.46 per share and revenue of $5.46 billion, which would represent changes of +22.69% and +23.64%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Fortinet. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Fortinet is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Fortinet is currently trading at a Forward P/E ratio of 48.6. This represents a premium compared to its industry's average Forward P/E of 40.68.
Meanwhile, FTNT's PEG ratio is currently 2.7. 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 Internet - Software industry currently had an average PEG ratio of 1.78 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.