In the latest trading session, Fortinet (FTNT) closed at $83.40, marking a +0.55% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.55%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.42%.
Prior to today's trading, shares of the network security company had lost 4.94% over the past month. This has was narrower than the Computer and Technology sector's loss of 6.53% and the S&P 500's loss 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 November 1, 2018. On that day, FTNT is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $450.92 million, up 20.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.67 per share and revenue of $1.78 billion. These totals would mark changes of +60.58% and +19.21%, respectively, from last year.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. FTNT is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that FTNT has a Forward P/E ratio of 49.8 right now. This represents a discount compared to its industry's average Forward P/E of 54.72.
It is also worth noting that FTNT currently has a PEG ratio of 2.97. 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. The Security industry currently had an average PEG ratio of 3.01 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 24, which puts it in the top 9% 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.
To follow FTNT in the coming trading sessions, be sure to utilize Zacks.com.
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