Fortinet (FTNT) Gains As Market Dips: What You Should Know
In the latest trading session, Fortinet (FTNT) closed at $75.25, marking a +0.51% move from the previous day. This change outpaced the S&P 500's 0.12% loss on the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.32%.
Prior to today's trading, shares of the network security company had lost 3.07% over the past month. This has lagged the Computer and Technology sector's gain of 2.43% and the S&P 500's gain of 3.31% in that time.
Investors will be hoping for strength from FTNT as it approaches its next earnings release. The company is expected to report EPS of $0.50, up 21.95% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $510.89 million, up 15.77% from the prior-year quarter.
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 +15.77%, respectively.
Investors should also note any recent changes to analyst estimates for FTNT. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that FTNT has a Forward P/E ratio of 35.1 right now. Its industry sports an average Forward P/E of 36.8, so we one might conclude that FTNT is trading at a discount comparatively.
Investors should also note that FTNT has a PEG ratio of 2.34 right now. 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 2.24 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 41, putting it in the top 17% 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.
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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.