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Fortinet (FTNT) Suffers a Larger Drop Than the General Market: Key Insights
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Fortinet (FTNT - Free Report) ended the recent trading session at $81.40, demonstrating a -2.07% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.51% for the day. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 2.01%.
Prior to today's trading, shares of the network security company had gained 1.78% outpaced the Computer and Technology sector's loss of 1.84% and the S&P 500's loss of 3.63%.
The investment community will be closely monitoring the performance of Fortinet in its forthcoming earnings report. The company is expected to report EPS of $0.62, up 6.9% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.73 billion, reflecting a 12.43% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.96 per share and revenue of $7.6 billion. These totals would mark changes of +7.25% and +11.71%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Fortinet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Fortinet is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Fortinet is presently trading at a Forward P/E ratio of 28.11. This expresses a discount compared to the average Forward P/E of 38.96 of its industry.
We can additionally observe that FTNT currently boasts a PEG ratio of 2.53. 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. The average PEG ratio for the Security industry stood at 2.66 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Fortinet (FTNT) Suffers a Larger Drop Than the General Market: Key Insights
Fortinet (FTNT - Free Report) ended the recent trading session at $81.40, demonstrating a -2.07% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.51% for the day. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 2.01%.
Prior to today's trading, shares of the network security company had gained 1.78% outpaced the Computer and Technology sector's loss of 1.84% and the S&P 500's loss of 3.63%.
The investment community will be closely monitoring the performance of Fortinet in its forthcoming earnings report. The company is expected to report EPS of $0.62, up 6.9% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.73 billion, reflecting a 12.43% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.96 per share and revenue of $7.6 billion. These totals would mark changes of +7.25% and +11.71%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Fortinet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Fortinet is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Fortinet is presently trading at a Forward P/E ratio of 28.11. This expresses a discount compared to the average Forward P/E of 38.96 of its industry.
We can additionally observe that FTNT currently boasts a PEG ratio of 2.53. 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. The average PEG ratio for the Security industry stood at 2.66 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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 follow all of these stock-moving metrics, and many more, on Zacks.com.