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Fortinet (FTNT) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Fortinet (FTNT - Free Report) closed at $62.62, marking a -1.39% move from the previous day. This change lagged the S&P 500's daily gain of 0.12%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.29%.
Heading into today, shares of the network security company had gained 7.32% over the past month, outpacing the Computer and Technology sector's gain of 2.32% and the S&P 500's gain of 0.09% in that time.
Fortinet will be looking to display strength as it nears its next earnings release. In that report, analysts expect Fortinet to post earnings of $0.37 per share. This would mark year-over-year growth of 12.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.35 billion, up 17.36% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.51 per share and revenue of $5.4 billion. These totals would mark changes of +26.89% and +22.24%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. Fortinet is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Fortinet has a Forward P/E ratio of 42.07 right now. This valuation marks a premium compared to its industry's average Forward P/E of 38.77.
Also, we should mention that FTNT has a PEG ratio of 2.3. 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. The Internet - Software was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Fortinet (FTNT - Free Report) closed at $62.62, marking a -1.39% move from the previous day. This change lagged the S&P 500's daily gain of 0.12%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.29%.
Heading into today, shares of the network security company had gained 7.32% over the past month, outpacing the Computer and Technology sector's gain of 2.32% and the S&P 500's gain of 0.09% in that time.
Fortinet will be looking to display strength as it nears its next earnings release. In that report, analysts expect Fortinet to post earnings of $0.37 per share. This would mark year-over-year growth of 12.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.35 billion, up 17.36% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.51 per share and revenue of $5.4 billion. These totals would mark changes of +26.89% and +22.24%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. Fortinet is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Fortinet has a Forward P/E ratio of 42.07 right now. This valuation marks a premium compared to its industry's average Forward P/E of 38.77.
Also, we should mention that FTNT has a PEG ratio of 2.3. 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. The Internet - Software was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.