We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fortinet (FTNT) Beats Stock Market Upswing: What Investors Need to Know
Read MoreHide Full Article
Fortinet (FTNT - Free Report) closed the latest trading day at $97.81, indicating a +1.44% change from the previous session's end. This move outpaced the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.
The network security company's stock has climbed by 3.54% in the past month, falling short of the Computer and Technology sector's gain of 5.09% and outpacing the S&P 500's gain of 0.22%.
Investors will be eagerly watching for the performance of Fortinet in its upcoming earnings disclosure. The company is expected to report EPS of $0.60, up 17.65% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.59 billion, showing a 12.59% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.23 per share and a revenue of $5.89 billion, demonstrating changes of +36.81% and +11.01%, respectively, from the preceding 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.4% higher within the past month. Fortinet currently has a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Fortinet is currently being traded at a Forward P/E ratio of 43.27. This valuation marks a premium compared to its industry's average Forward P/E of 32.85.
Investors should also note that FTNT has a PEG ratio of 2.37 right now. 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 had an average PEG ratio of 2.37 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Fortinet (FTNT) Beats Stock Market Upswing: What Investors Need to Know
Fortinet (FTNT - Free Report) closed the latest trading day at $97.81, indicating a +1.44% change from the previous session's end. This move outpaced the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.
The network security company's stock has climbed by 3.54% in the past month, falling short of the Computer and Technology sector's gain of 5.09% and outpacing the S&P 500's gain of 0.22%.
Investors will be eagerly watching for the performance of Fortinet in its upcoming earnings disclosure. The company is expected to report EPS of $0.60, up 17.65% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.59 billion, showing a 12.59% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.23 per share and a revenue of $5.89 billion, demonstrating changes of +36.81% and +11.01%, respectively, from the preceding 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.4% higher within the past month. Fortinet currently has a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Fortinet is currently being traded at a Forward P/E ratio of 43.27. This valuation marks a premium compared to its industry's average Forward P/E of 32.85.
Investors should also note that FTNT has a PEG ratio of 2.37 right now. 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 had an average PEG ratio of 2.37 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.