In the latest trading session, Fortinet (FTNT) closed at $127.35, marking a -1.52% move from the previous day. This change lagged the S&P 500's 0.34% loss on the day. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.73%.
Heading into today, shares of the network security company had lost 4.55% over the past month, lagging the Computer and Technology sector's gain of 7.57% and the S&P 500's gain of 5.71% 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. The company is expected to report EPS of $0.65, up 12.07% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $598.82 million, up 14.78% from the year-ago period.
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.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FTNT currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that FTNT has a Forward P/E ratio of 46.1 right now. For comparison, its industry has an average Forward P/E of 46.1, which means FTNT is trading at a no noticeable deviation to the group.
Also, we should mention that FTNT has a PEG ratio of 3.29. 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. Security stocks are, on average, holding a PEG ratio of 2.8 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.