U.S. Markets open in 9 hrs 9 mins
  • S&P Futures

    4,532.75
    +24.25 (+0.54%)
     
  • Dow Futures

    34,199.00
    +197.00 (+0.58%)
     
  • Nasdaq Futures

    15,943.25
    +73.50 (+0.46%)
     
  • Russell 2000 Futures

    2,164.50
    +18.20 (+0.85%)
     
  • Crude Oil

    66.09
    +0.52 (+0.79%)
     
  • Gold

    1,777.40
    -6.90 (-0.39%)
     
  • Silver

    22.36
    +0.03 (+0.12%)
     
  • EUR/USD

    1.1328
    +0.0005 (+0.0453%)
     
  • 10-Yr Bond

    1.4340
    -0.0090 (-0.62%)
     
  • Vix

    31.12
    +3.93 (+14.45%)
     
  • GBP/USD

    1.3284
    +0.0007 (+0.0531%)
     
  • USD/JPY

    113.0800
    +0.3000 (+0.2660%)
     
  • BTC-USD

    56,968.48
    +26.10 (+0.05%)
     
  • CMC Crypto 200

    1,445.14
    -23.94 (-1.63%)
     
  • FTSE 100

    7,168.68
    +109.23 (+1.55%)
     
  • Nikkei 225

    27,821.20
    -114.42 (-0.41%)
     

Fortinet (FTNT) Gains As Market Dips: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Fortinet (FTNT) closed at $335.29 in the latest trading session, marking a +0.28% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.11%.

Prior to today's trading, shares of the network security company had gained 7.66% over the past month. This has outpaced the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 4.61% in that time.

Investors will be hoping for strength from FTNT as it approaches its next earnings release, which is expected to be November 4, 2021. The company is expected to report EPS of $0.94, up 6.82% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $809.86 million, up 24.38% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.87 per share and revenue of $3.24 billion. These totals would mark changes of +15.52% and +24.88%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for FTNT. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 remained stagnant. FTNT currently has a Zacks Rank of #2 (Buy).

Investors should also note FTNT's current valuation metrics, including its Forward P/E ratio of 86.34. This represents a premium compared to its industry's average Forward P/E of 46.13.

It is also worth noting that FTNT currently has a PEG ratio of 6.06. 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. The Security industry currently had an average PEG ratio of 2.72 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Fortinet, Inc. (FTNT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.