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Why the Market Dipped But Fortinet (FTNT) Gained Today
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Fortinet (FTNT - Free Report) closed at $62.25 in the latest trading session, marking a +1.43% move from the prior day. This move outpaced the S&P 500's daily loss of 0.07%.
Coming into today, shares of the network security company had gained 10.88% in the past month. In that same time, the Computer and Technology sector gained 2.5%, while the S&P 500 gained 3.98%.
Analysts and investors alike will be keeping a close eye on the performance of Fortinet in its upcoming earnings disclosure. The company's earnings report is set to go public on February 6, 2024. The company is expected to report EPS of $0.43, down 2.27% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.41 billion, showing a 9.67% escalation compared to the year-ago quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.29% decrease. Fortinet is currently a Zacks Rank #3 (Hold).
With respect to valuation, Fortinet is currently being traded at a Forward P/E ratio of 37.1. This signifies a premium in comparison to the average Forward P/E of 35.52 for its industry.
Investors should also note that FTNT has a PEG ratio of 2.06 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.67.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why the Market Dipped But Fortinet (FTNT) Gained Today
Fortinet (FTNT - Free Report) closed at $62.25 in the latest trading session, marking a +1.43% move from the prior day. This move outpaced the S&P 500's daily loss of 0.07%.
Coming into today, shares of the network security company had gained 10.88% in the past month. In that same time, the Computer and Technology sector gained 2.5%, while the S&P 500 gained 3.98%.
Analysts and investors alike will be keeping a close eye on the performance of Fortinet in its upcoming earnings disclosure. The company's earnings report is set to go public on February 6, 2024. The company is expected to report EPS of $0.43, down 2.27% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.41 billion, showing a 9.67% escalation compared to the year-ago quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.29% decrease. Fortinet is currently a Zacks Rank #3 (Hold).
With respect to valuation, Fortinet is currently being traded at a Forward P/E ratio of 37.1. This signifies a premium in comparison to the average Forward P/E of 35.52 for its industry.
Investors should also note that FTNT has a PEG ratio of 2.06 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.67.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.