Fortinet (FTNT) Stock Declines While Market Improves: Some Information for Investors
The latest trading session saw Fortinet (FTNT) ending at $65.55, denoting a -0.85% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.53%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.19%.
The network security company's shares have seen an increase of 11.41% over the last month, surpassing the Computer and Technology sector's gain of 5.21% and the S&P 500's gain of 2.48%.
Market participants will be closely following the financial results of Fortinet in its upcoming release. The company plans to announce its earnings on February 6, 2024. The company is forecasted to report an EPS of $0.43, showcasing a 2.27% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.41 billion, up 9.77% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Fortinet. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 1.7% lower within the past month. As of now, Fortinet holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Fortinet has a Forward P/E ratio of 40.4 right now. This represents a premium compared to its industry's average Forward P/E of 34.62.
Investors should also note that FTNT has a PEG ratio of 2.24 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.78.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Fortinet, Inc. (FTNT) : Free Stock Analysis Report
