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Is Fortinet (FTNT) Stock Outpacing Its Computer and Technology Peers This Year?

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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Fortinet (FTNT - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Fortinet is one of 608 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Fortinet is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for FTNT's full-year earnings has moved 2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that FTNT has returned about 8.5% since the start of the calendar year. Meanwhile, stocks in the Computer and Technology group have lost about 1.1% on average. As we can see, Fortinet is performing better than its sector in the calendar year.

One other Computer and Technology stock that has outperformed the sector so far this year is CyberAgent (CYGIY - Free Report) . The stock is up 55.2% year-to-date.

For CyberAgent, the consensus EPS estimate for the current year has increased 6.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Fortinet belongs to the Security industry, a group that includes 10 individual stocks and currently sits at #16 in the Zacks Industry Rank. On average, this group has gained an average of 20.6% so far this year, meaning that FTNT is slightly underperforming its industry in terms of year-to-date returns.

CyberAgent, however, belongs to the Internet - Services industry. Currently, this 36-stock industry is ranked #91. The industry has moved -8.7% so far this year.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Fortinet and CyberAgent as they could maintain their solid performance.


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