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Fortinet (FTNT) Gains As Market Dips: What You Should Know
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In the latest trading session, Fortinet (FTNT - Free Report) closed at $77.81, marking a +0.41% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.33%.
Heading into today, shares of the network security company had lost 3.61% over the past month, lagging the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 0.59% in that time.
Investors will be hoping for strength from FTNT as it approaches its next earnings release, which is expected to be October 31, 2019. On that day, FTNT is projected to report earnings of $0.56 per share, which would represent year-over-year growth of 27.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $532.96 million, up 17.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.25 per share and revenue of $2.11 billion, which would represent changes of +22.28% and +17.3%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for FTNT. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. FTNT currently has a Zacks Rank of #3 (Hold).
Investors should also note FTNT's current valuation metrics, including its Forward P/E ratio of 34.47. For comparison, its industry has an average Forward P/E of 38.19, which means FTNT is trading at a discount to the group.
Also, we should mention that FTNT has a PEG ratio of 2.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. FTNT's industry had an average PEG ratio of 2.27 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Fortinet (FTNT) Gains As Market Dips: What You Should Know
In the latest trading session, Fortinet (FTNT - Free Report) closed at $77.81, marking a +0.41% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.33%.
Heading into today, shares of the network security company had lost 3.61% over the past month, lagging the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 0.59% in that time.
Investors will be hoping for strength from FTNT as it approaches its next earnings release, which is expected to be October 31, 2019. On that day, FTNT is projected to report earnings of $0.56 per share, which would represent year-over-year growth of 27.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $532.96 million, up 17.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.25 per share and revenue of $2.11 billion, which would represent changes of +22.28% and +17.3%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for FTNT. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. FTNT currently has a Zacks Rank of #3 (Hold).
Investors should also note FTNT's current valuation metrics, including its Forward P/E ratio of 34.47. For comparison, its industry has an average Forward P/E of 38.19, which means FTNT is trading at a discount to the group.
Also, we should mention that FTNT has a PEG ratio of 2.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. FTNT's industry had an average PEG ratio of 2.27 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.