Fortinet (FTNT) closed the most recent trading day at $117.84, moving +0.47% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.16%. Elsewhere, the Dow lost 1.84%, while the tech-heavy Nasdaq lost 0.13%.
Heading into today, shares of the network security company had lost 12.21% over the past month, lagging the Computer and Technology sector's loss of 2.66% and the S&P 500's loss of 1.96% in that time.
FTNT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.77, up 14.93% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $638.56 million, up 16.63% from the year-ago period.
FTNT's full-year Zacks Consensus Estimates are calling for earnings of $3.05 per share and revenue of $2.53 billion. These results would represent year-over-year changes of +23.48% and +17.48%, respectively.
It is also important to note the recent changes to analyst estimates for FTNT. These revisions help to show the ever-changing nature of near-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. 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, 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. The Zacks Consensus EPS estimate has moved 3.81% higher within the past month. FTNT currently has a Zacks Rank of #3 (Hold).
Digging into valuation, FTNT currently has a Forward P/E ratio of 38.42. Its industry sports an average Forward P/E of 38.42, so we one might conclude that FTNT is trading at a no noticeable deviation comparatively.
It is also worth noting that FTNT currently has a PEG ratio of 2.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security industry currently had an average PEG ratio of 2.43 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% 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.