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

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Zacks Equity Research
·3 min read
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In the latest trading session, Fortinet (FTNT) closed at $128.36, marking a +0.63% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Heading into today, shares of the network security company had gained 12.29% over the past month, outpacing the Computer and Technology sector's gain of 7.17% and the S&P 500's gain of 3.58% in that time.

Investors will be hoping for strength from FTNT as it approaches its next earnings release. The company is expected to report EPS of $0.96, up 26.32% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $721.82 million, up 17.48% from the year-ago period.

FTNT's full-year Zacks Consensus Estimates are calling for earnings of $3.25 per share and revenue of $2.57 billion. These results would represent year-over-year changes of +31.58% and +19.01%, respectively.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. FTNT is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, FTNT is holding a Forward P/E ratio of 39.28. For comparison, its industry has an average Forward P/E of 42.8, which means FTNT is trading at a discount to the group.

Meanwhile, FTNT's PEG ratio is currently 2.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FTNT's industry had an average PEG ratio of 2.42 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 172, which puts it in the bottom 33% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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