Fortinet (FTNT) ended the recent trading session at $103.44, demonstrating a -1.42% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.32%. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.26%.
The network security company's shares have seen an increase of 1.99% over the last month, not keeping up with the Computer and Technology sector's gain of 7.22% and the S&P 500's gain of 4.51%.
Investors will be eagerly watching for the performance of Fortinet in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 6, 2025. The company is expected to report EPS of $0.59, up 3.51% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.62 billion, indicating a 13.04% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.48 per share and revenue of $6.75 billion, indicating changes of +4.64% and +13.38%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Fortinet. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Fortinet currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Fortinet has a Forward P/E ratio of 42.34 right now. For comparison, its industry has an average Forward P/E of 73.58, which means Fortinet is trading at a discount to the group.
Also, we should mention that FTNT has a PEG ratio of 3.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security industry currently had an average PEG ratio of 3.15 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 19% of all industries, numbering over 250.
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.
To follow FTNT in the coming trading sessions, be sure to utilize Zacks.com.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
