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Fortinet (FTNT) Stock Dips While Market Gains: Key Facts

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In the latest trading session, Fortinet (FTNT - Free Report) closed at $181.91, marking a -1.16% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.08%.

The network security company's stock has climbed by 7.15% in the past month, exceeding the Computer and Technology sector's gain of 1.62% and the S&P 500's gain of 1.41%.

The upcoming earnings release of Fortinet will be of great interest to investors. The company's earnings report is expected on October 28, 2026. On that day, Fortinet is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 16.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.06 billion, up 19.58% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.45 per share and revenue of $8.12 billion, which would represent changes of +25% and +19.4%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.77% higher. Fortinet is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Fortinet is holding a Forward P/E ratio of 53.4. Its industry sports an average Forward P/E of 53.96, so one might conclude that Fortinet is trading at a discount comparatively.

Investors should also note that FTNT has a PEG ratio of 3.09 right now. 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 the market closed yesterday, the Security industry was having an average PEG ratio of 3.11.

The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

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