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Fortinet (FTNT) Outpaces Stock Market Gains: What You Should Know

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Fortinet (FTNT - Free Report) closed at $118.33 in the latest trading session, marking a +0.9% move from the prior day. This move outpaced the S&P 500's daily gain of 0.31%. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq added 0.26%.

Heading into today, shares of the network security company had gained 9.84% over the past month, outpacing the Computer and Technology sector's gain of 4.64% and the S&P 500's gain of 1.18% in that time.

Wall Street will be looking for positivity from FTNT as it approaches its next earnings report date. This is expected to be February 6, 2020. In that report, analysts expect FTNT to post earnings of $0.70 per share. This would mark year-over-year growth of 18.64%. Meanwhile, our latest consensus estimate is calling for revenue of $603.25 million, up 18.98% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for FTNT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.34% higher. FTNT is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, FTNT is holding a Forward P/E ratio of 43.26. Its industry sports an average Forward P/E of 43.26, so we one might conclude that FTNT is trading at a no noticeable deviation comparatively.

Investors should also note that FTNT has a PEG ratio of 3.09 right now. 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. The Security was holding an average PEG ratio of 2.46 at yesterday's closing price.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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