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Fortinet (FTNT) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Fortinet (FTNT) closed at $85.22, marking a +1.49% move from the previous day. This change outpaced the S&P 500's 1.16% gain on the day. Meanwhile, the Dow gained 1.27%, and the Nasdaq, a tech-heavy index, added 1.29%.

Coming into today, shares of the network security company had lost 3.25% in the past month. In that same time, the Computer and Technology sector gained 3.18%, while the S&P 500 gained 1.92%.

FTNT will be looking to display strength as it nears its nex t earnings release. The company is expected to report EPS of $0.39, up 18.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $471.57 million, up 18.19% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.07 per share and revenue of $2.08 billion, which would represent changes of +12.5% and +15.69%, respectively, from the prior year.

Any recent changes to analyst estimates for FTNT should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FTNT is currently a Zacks Rank #1 (Strong Buy).

Investors should also note FTNT's current valuation metrics, including its Forward P/E ratio of 40.47. This represents a discount compared to its industry's average Forward P/E of 44.65.

Also, we should mention that FTNT has a PEG ratio of 2.42. 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 2.49 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 36, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many 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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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