Fortinet (FTNT) Stock Falls Amid Market Uptick: What Investors Need to Know

In the latest trading session, Fortinet (FTNT) closed at $64.68, marking a -0.08% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq gained 0.12%.

Coming into today, shares of the network security company had lost 4.17% in the past month. In that same time, the Computer and Technology sector lost 0.55%, while the S&P 500 lost 0.9%.

Market participants will be closely following the financial results of Fortinet in its upcoming release. The company plans to announce its earnings on May 2, 2024. The company's earnings per share (EPS) are projected to be $0.38, reflecting a 11.76% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.33 billion, reflecting a 5.73% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.69 per share and a revenue of $5.77 billion, signifying shifts of +3.68% and +8.77%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, the Zacks Consensus EPS estimate remained stagnant. Fortinet is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Fortinet is currently being traded at a Forward P/E ratio of 38.33. This valuation marks a premium compared to its industry's average Forward P/E of 27.33.

It's also important to note that FTNT currently trades at a PEG ratio of 2.36. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.79.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 47, placing it within the top 19% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How To Profit From Trillions On Spending For Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Fortinet, Inc. (FTNT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.