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Fortinet (FTNT) Declines More Than Market: Some Information for Investors

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Fortinet (FTNT - Free Report) closed at $78.74 in the latest trading session, marking a -0.79% move from the prior day. This change lagged the S&P 500's 0.33% loss on the day. Meanwhile, the Dow experienced a drop of 0.22%, and the technology-dominated Nasdaq saw a decrease of 0.56%.

The network security company's shares have seen an increase of 3.77% over the last month, surpassing the Computer and Technology sector's gain of 2.83% and the S&P 500's gain of 1.83%.

Investors will be eagerly watching for the performance of Fortinet in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 7, 2024. The company's earnings per share (EPS) are projected to be $0.51, reflecting a 24.39% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.48 billion, up 10.69% from the year-ago period.

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 +10.29%, respectively, from the preceding year.

Any recent changes to analyst estimates for Fortinet should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Right now, Fortinet possesses a Zacks Rank of #2 (Buy).

Looking at valuation, Fortinet is presently trading at a Forward P/E ratio of 39.09. This signifies a premium in comparison to the average Forward P/E of 31.33 for its industry.

It's also important to note that FTNT currently trades at a PEG ratio of 2.41. 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 of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.17.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 33% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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