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Fortinet (FTNT) closed at $268.99 in the latest trading session, marking a +1.99% move from the prior day. This move outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.22%.
Heading into today, shares of the network security company had lost 5.71% over the past month, outpacing the Computer and Technology sector's loss of 9.55% and the S&P 500's loss of 10.02% in that time.
Investors will be hoping for strength from Fortinet as it approaches its next earnings release. On that day, Fortinet is projected to report earnings of $1.09 per share, which would represent year-over-year growth of 14.74%. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, up 28.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.09 per share and revenue of $4.38 billion, which would represent changes of +27.57% and +31.06%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. Fortinet currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Fortinet has a Forward P/E ratio of 52.86 right now. Its industry sports an average Forward P/E of 38.67, so we one might conclude that Fortinet is trading at a premium comparatively.
We can also see that FTNT currently has a PEG ratio of 2.94. 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 was holding an average PEG ratio of 2.6 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 104, which puts it in the top 42% 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.