Fortinet (FTNT) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Fortinet (FTNT) closed at $66.44, marking a -0.02% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw an increase of 1.74%.
The the stock of network security company has risen by 13.8% in the past month, leading the Computer and Technology sector's gain of 4.83% and the S&P 500's gain of 2.93%.
Analysts and investors alike will be keeping a close eye on the performance of Fortinet in its upcoming earnings disclosure. The company's earnings report is set to go public 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.41 billion, up 9.93% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Fortinet. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.65% fall in the Zacks Consensus EPS estimate. As of now, Fortinet holds a Zacks Rank of #4 (Sell).
Investors should also note Fortinet's current valuation metrics, including its Forward P/E ratio of 40.6. Its industry sports an average Forward P/E of 31.2, so one might conclude that Fortinet is trading at a premium comparatively.
We can additionally observe that FTNT currently boasts a PEG ratio of 2.25. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.67.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 31% of over 250 industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Fortinet, Inc. (FTNT) : Free Stock Analysis Report
