Fortinet (FTNT) closed at $107.79 in the latest trading session, marking a +0.81% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 0.23%.
Heading into today, shares of the network security company had gained 3.79% over the past month, lagging the Computer and Technology sector's gain of 4.31% and the S&P 500's gain of 3.81% in that time.
Investors will be hoping for strength from FTNT as it approaches its next earnings release. In that report, analysts expect FTNT to post earnings of $0.70 per share. This would mark year-over-year growth of 18.64%. Our most recent consensus estimate is calling for quarterly revenue of $600.78 million, up 18.5% from the year-ago period.
FTNT's full-year Zacks Consensus Estimates are calling for earnings of $2.41 per share and revenue of $2.14 billion. These results would represent year-over-year changes of +30.98% and +18.75%, respectively.
Any recent changes to analyst estimates for FTNT should also be noted by investors. These revisions help to show the ever-changing nature of 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. The Zacks Consensus EPS estimate remained stagnant within the past month. FTNT is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, FTNT is currently trading at a Forward P/E ratio of 44.37. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 44.37.
Also, we should mention that FTNT has a PEG ratio of 3.17. 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. FTNT's industry had an average PEG ratio of 2.3 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 17, which puts it in the top 7% 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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