Fortinet (FTNT - Free Report) closed the most recent trading day at $92.26, moving +0.29% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.23%.
Heading into today, shares of the network security company had gained 8.43% over the past month, outpacing the Computer and Technology sector's gain of 6.02% and the S&P 500's gain of 4.87% in that time.
FTNT will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2019. The company is expected to report EPS of $0.38, up 15.15% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $471.82 million, up 18.25% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.08 per share and revenue of $2.08 billion, which would represent changes of +13.04% and +15.73%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for FTNT. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.22% higher within the past month. FTNT is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, FTNT currently has a Forward P/E ratio of 44.28. Its industry sports an average Forward P/E of 45.58, so we one might conclude that FTNT is trading at a discount comparatively.
It is also worth noting that FTNT currently has a PEG ratio of 2.86. 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. Security stocks are, on average, holding a PEG ratio of 2.81 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.