In the latest trading session, Fortinet (FTNT) closed at $86.58, marking a -1.18% move from the previous day. This move lagged the S&P 500's daily gain of 0.47%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq gained 0.85%.
Prior to today's trading, shares of the network security company had gained 17.02% over the past month. This has outpaced the Computer and Technology sector's gain of 2.8% and the S&P 500's gain of 2.08% in that time.
FTNT will be looking to display strength as it nears its next earnings release, which is expected to be August 1, 2019. On that day, FTNT is projected to report earnings of $0.50 per share, which would represent year-over-year growth of 21.95%. Our most recent consensus estimate is calling for quarterly revenue of $510.89 million, up 15.77% from the year-ago period.
FTNT's full-year Zacks Consensus Estimates are calling for earnings of $2.13 per share and revenue of $2.09 billion. These results would represent year-over-year changes of +15.76% and +15.85%, respectively.
Investors might also notice recent changes to analyst estimates for FTNT. 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.
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 currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that FTNT has a Forward P/E ratio of 41.07 right now. For comparison, its industry has an average Forward P/E of 41.51, which means FTNT is trading at a discount to the group.
We can also see that FTNT currently has a PEG ratio of 2.74. 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 2.45 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 106, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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