Fortinet (FTNT) closed the most recent trading day at $118.30, moving -0.66% from the previous trading session. This change was narrower than the S&P 500's 1.4% loss on the day. Meanwhile, the Dow lost 1.34%, and the Nasdaq, a tech-heavy index, lost 1.57%.
Prior to today's trading, shares of the network security company had gained 1.23% over the past month. This has outpaced the Computer and Technology sector's loss of 0.17% and the S&P 500's loss of 0.46% 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 October 29, 2020. On that day, FTNT is projected to report earnings of $0.77 per share, which would represent year-over-year growth of 14.93%. Our most recent consensus estimate is calling for quarterly revenue of $638.54 million, up 16.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.04 per share and revenue of $2.53 billion, which would represent changes of +23.08% and +17.5%, respectively, from the prior year.
Any recent changes to analyst estimates for FTNT should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 1.24% higher within the past month. FTNT is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note FTNT's current valuation metrics, including its Forward P/E ratio of 39.14. Its industry sports an average Forward P/E of 39.14, so we one might conclude that FTNT is trading at a no noticeable deviation comparatively.
We can also see that FTNT currently has a PEG ratio of 2.8. 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. The Security was holding an average PEG ratio of 2.46 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 121, which puts it in the top 48% 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.
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