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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 $180.95, moving +1.25% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 1.19%.
Heading into today, shares of the network security company had gained 14.3% over the past month, outpacing the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of Fortinet in its forthcoming earnings report. The company is predicted to post an EPS of $0.86, indicating a 16.22% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.06 billion, indicating a 19.44% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.42 per share and revenue of $8.12 billion, which would represent changes of +23.91% and +19.37%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Fortinet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, there's been a 0.8% rise in the Zacks Consensus EPS estimate. Fortinet is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Fortinet's current valuation metrics, including its Forward P/E ratio of 52.19. For comparison, its industry has an average Forward P/E of 54.15, which means Fortinet is trading at a discount to the group.
We can also see that FTNT currently has a PEG ratio of 3.02. 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. As of the close of trade yesterday, the Security industry held an average PEG ratio of 3.03.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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 $180.95, moving +1.25% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 1.19%.
Heading into today, shares of the network security company had gained 14.3% over the past month, outpacing the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.
The investment community will be closely monitoring the performance of Fortinet in its forthcoming earnings report. The company is predicted to post an EPS of $0.86, indicating a 16.22% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.06 billion, indicating a 19.44% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.42 per share and revenue of $8.12 billion, which would represent changes of +23.91% and +19.37%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Fortinet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, there's been a 0.8% rise in the Zacks Consensus EPS estimate. Fortinet is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Fortinet's current valuation metrics, including its Forward P/E ratio of 52.19. For comparison, its industry has an average Forward P/E of 54.15, which means Fortinet is trading at a discount to the group.
We can also see that FTNT currently has a PEG ratio of 3.02. 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. As of the close of trade yesterday, the Security industry held an average PEG ratio of 3.03.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.