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Why Fortinet (FTNT) Outpaced the Stock Market Today
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Fortinet (FTNT - Free Report) closed the most recent trading day at $155.42, moving +2.69% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.18%. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 2.07%.
The network security company's stock has climbed by 9.7% in the past month, exceeding the Computer and Technology sector's loss of 5.33% and the S&P 500's loss of 2.9%.
The investment community will be paying close attention to the earnings performance of Fortinet in its upcoming release. The company is forecasted to report an EPS of $0.74, showcasing a 15.63% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.88 billion, indicating a 15.44% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.13 per share and a revenue of $7.8 billion, representing changes of +13.41% and +14.65%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Fortinet. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.5% higher within the past month. Fortinet is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Fortinet is presently being traded at a Forward P/E ratio of 48.28. This expresses a premium compared to the average Forward P/E of 44.58 of its industry.
We can also see that FTNT currently has a PEG ratio of 3.68. 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 Security industry had an average PEG ratio of 3.1 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 110, this industry ranks in the top 46% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Why Fortinet (FTNT) Outpaced the Stock Market Today
Fortinet (FTNT - Free Report) closed the most recent trading day at $155.42, moving +2.69% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.18%. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 2.07%.
The network security company's stock has climbed by 9.7% in the past month, exceeding the Computer and Technology sector's loss of 5.33% and the S&P 500's loss of 2.9%.
The investment community will be paying close attention to the earnings performance of Fortinet in its upcoming release. The company is forecasted to report an EPS of $0.74, showcasing a 15.63% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.88 billion, indicating a 15.44% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.13 per share and a revenue of $7.8 billion, representing changes of +13.41% and +14.65%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Fortinet. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.5% higher within the past month. Fortinet is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Fortinet is presently being traded at a Forward P/E ratio of 48.28. This expresses a premium compared to the average Forward P/E of 44.58 of its industry.
We can also see that FTNT currently has a PEG ratio of 3.68. 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 Security industry had an average PEG ratio of 3.1 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 110, this industry ranks in the top 46% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.