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Fortinet (FTNT) Outpaces Stock Market Gains: What You Should Know
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Fortinet (FTNT - Free Report) closed the most recent trading day at $86.29, moving +1.3% from the previous trading session. This change outpaced the S&P 500's 0.06% gain on the day. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.
Coming into today, shares of the network security company had gained 11.23% in the past month. In that same time, the Computer and Technology sector gained 8.78%, while the S&P 500 gained 3.94%.
The upcoming earnings release of Fortinet will be of great interest to investors. The company is expected to report EPS of $0.63, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.7 billion, up 12.89% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.52 per share and a revenue of $6.75 billion, signifying shifts of +6.33% and +13.29%, respectively, from the last year.
Investors should also take note of any recent adjustments 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 business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.29% rise in the Zacks Consensus EPS estimate. Currently, Fortinet is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Fortinet is currently exchanging hands at a Forward P/E ratio of 33.82. For comparison, its industry has an average Forward P/E of 68.92, which means Fortinet is trading at a discount to the group.
We can also see that FTNT currently has a PEG ratio of 2.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Security industry was having an average PEG ratio of 2.8.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 40% echelons of all 250+ industries.
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.
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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Fortinet (FTNT) Outpaces Stock Market Gains: What You Should Know
Fortinet (FTNT - Free Report) closed the most recent trading day at $86.29, moving +1.3% from the previous trading session. This change outpaced the S&P 500's 0.06% gain on the day. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.
Coming into today, shares of the network security company had gained 11.23% in the past month. In that same time, the Computer and Technology sector gained 8.78%, while the S&P 500 gained 3.94%.
The upcoming earnings release of Fortinet will be of great interest to investors. The company is expected to report EPS of $0.63, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.7 billion, up 12.89% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.52 per share and a revenue of $6.75 billion, signifying shifts of +6.33% and +13.29%, respectively, from the last year.
Investors should also take note of any recent adjustments 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 business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.29% rise in the Zacks Consensus EPS estimate. Currently, Fortinet is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Fortinet is currently exchanging hands at a Forward P/E ratio of 33.82. For comparison, its industry has an average Forward P/E of 68.92, which means Fortinet is trading at a discount to the group.
We can also see that FTNT currently has a PEG ratio of 2.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Security industry was having an average PEG ratio of 2.8.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 150, finds itself in the bottom 40% echelons of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.