In the latest trading session, Fortinet (FTNT) closed at $57.50, marking a +0.19% move from the previous day. This move outpaced the S&P 500's daily loss of 0.5%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 1.28%.
The network security company's stock has dropped by 4.11% in the past month, exceeding the Computer and Technology sector's loss of 4.37% and lagging the S&P 500's gain of 0.1%.
The investment community will be paying close attention to the earnings performance of Fortinet in its upcoming release. The company is slated to reveal its earnings on August 6, 2024. In that report, analysts expect Fortinet to post earnings of $0.41 per share. This would mark year-over-year growth of 7.89%. Alongside, our most recent consensus estimate is anticipating revenue of $1.4 billion, indicating an 8.44% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $5.79 billion. These totals would mark changes of +7.98% and +9.22%, respectively, from last year.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.18% rise in the Zacks Consensus EPS estimate. Fortinet is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Fortinet is currently exchanging hands at a Forward P/E ratio of 32.68. This valuation marks a premium compared to its industry's average Forward P/E of 31.34.
Also, we should mention that FTNT has a PEG ratio of 2.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.8.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 103, finds itself in the top 41% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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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