Fortinet (FTNT) closed the most recent trading day at $136.75, moving -0.07% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.85%, and the tech-heavy Nasdaq gained 0.43%.
Heading into today, shares of the network security company had lost 1.71% over the past month, lagging the Computer and Technology sector's gain of 6.92% and the S&P 500's gain of 6.78% in that time.
Investors will be hoping for strength from FTNT as it approaches its next earnings release, which is expected to be August 6, 2020. In that report, analysts expect FTNT to post earnings of $0.65 per share. This would mark year-over-year growth of 12.07%. Meanwhile, our latest consensus estimate is calling for revenue of $598.82 million, up 14.78% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.81 per share and revenue of $2.50 billion, which would represent changes of +13.77% and +15.92%, respectively, from the prior year.
Any recent changes to analyst estimates for FTNT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FTNT is currently a Zacks Rank #2 (Buy).
Digging into valuation, FTNT currently has a Forward P/E ratio of 48.78. For comparison, its industry has an average Forward P/E of 48.78, which means FTNT is trading at a no noticeable deviation to the group.
We can also see that FTNT currently has a PEG ratio of 3.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security was holding an average PEG ratio of 2.9 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% 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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