In the latest trading session, Fortinet (FTNT) closed at $92.37, marking a -1.79% move from the previous day. This change lagged the S&P 500's daily loss of 0.23%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the network security company had gained 10.23% over the past month. This has outpaced the Computer and Technology sector's gain of 4.13% and the S&P 500's gain of 3.16% 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 May 2, 2019. On that day, FTNT is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 18.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $471.57 million, up 18.19% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.07 per share and revenue of $2.08 billion. These totals would mark changes of +12.5% and +15.75%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for FTNT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. FTNT is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that FTNT has a Forward P/E ratio of 45.33 right now. Its industry sports an average Forward P/E of 45.2, so we one might conclude that FTNT is trading at a premium comparatively.
Also, we should mention that FTNT has a PEG ratio of 2.92. 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 2.76 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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Fortinet, Inc. (FTNT) : Free Stock Analysis Report
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