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

Zacks Equity Research

In the latest trading session, Fortinet (FTNT) closed at $116.72, marking a +0.03% move from the previous day. This change outpaced the S&P 500's 0.15% loss on the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.24%.

Prior to today's trading, shares of the network security company had gained 8.81% over the past month. This has outpaced the Computer and Technology sector's gain of 7.03% and the S&P 500's gain of 3.88% 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 $600.78 million, up 18.5% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for FTNT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. FTNT currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, FTNT is holding a Forward P/E ratio of 43.07. Its industry sports an average Forward P/E of 43.07, so we one might conclude that FTNT is trading at a no noticeable deviation comparatively.

Meanwhile, FTNT's PEG ratio is currently 3.08. 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. The Security industry currently had an average PEG ratio of 2.21 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.

To follow FTNT in the coming trading sessions, be sure to utilize Zacks.com.


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