Fortinet (FTNT) Surpasses Market Returns: Some Facts Worth Knowing
Fortinet (FTNT) closed the latest trading day at $67.55, indicating a +1.24% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.82%.
The the stock of network security company has fallen by 2.57% in the past month, lagging the Computer and Technology sector's gain of 1.16% and the S&P 500's gain of 1.76%.
The upcoming earnings release of Fortinet will be of great interest to investors. On that day, Fortinet is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 11.76%. Simultaneously, our latest consensus estimate expects the revenue to be $1.33 billion, showing a 5.73% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.69 per share and a revenue of $5.77 billion, signifying shifts of +3.68% and +8.77%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Fortinet. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.31% higher. Currently, Fortinet is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Fortinet is presently being traded at a Forward P/E ratio of 39.51. This signifies a premium in comparison to the average Forward P/E of 29.2 for its industry.
We can also see that FTNT currently has a PEG ratio of 2.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.81 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Fortinet, Inc. (FTNT) : Free Stock Analysis Report
