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Fortinet (FTNT) Stock Sinks As Market Gains: What You Should Know

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Fortinet (FTNT - Free Report) ended the recent trading session at $82.84, demonstrating a -0.04% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.77% for the day. On the other hand, the Dow registered a gain of 0.47%, and the technology-centric Nasdaq increased by 0.87%.

The network security company's stock has climbed by 10.48% in the past month, exceeding the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 4.87%.

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 November 7, 2024. The company is expected to report EPS of $0.51, up 24.39% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.48 billion, indicating a 10.7% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $2.03 per share and a revenue of $5.85 billion, demonstrating changes of +24.54% and +10.22%, respectively, from the preceding year.

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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.01% higher. At present, Fortinet boasts a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Fortinet has a Forward P/E ratio of 40.82 right now. This indicates a premium in contrast to its industry's Forward P/E of 31.76.

We can additionally observe that FTNT currently boasts a PEG ratio of 2.51. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.03.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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