Fortinet (FTNT) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Fortinet (FTNT) closed at $76.61, marking a -0.49% move from the previous day. This move lagged the S&P 500's daily gain of 0.41%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 0.57%.
Coming into today, shares of the network security company had lost 5.01% in the past month. In that same time, the Computer and Technology sector lost 2.4%, while the S&P 500 gained 0.1%.
Wall Street will be looking for positivity from FTNT as it approaches its next earnings report date. On that day, FTNT is projected to report earnings of $0.50 per share, which would represent year-over-year growth of 21.95%. Our most recent consensus estimate is calling for quarterly revenue of $510.89 million, up 15.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.13 per share and revenue of $2.09 billion, which would represent changes of +15.76% and +15.83%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for FTNT. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. FTNT is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, FTNT is currently trading at a Forward P/E ratio of 36.09. Its industry sports an average Forward P/E of 37.63, so we one might conclude that FTNT is trading at a discount comparatively.
Also, we should mention that FTNT has a PEG ratio of 2.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Security stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Click to get this free report
Fortinet, Inc. (FTNT): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.