In the latest close session, Fortinet (FTNT) was down 1.99% at $104.81. The stock's performance was behind the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.39%.
Shares of the network security company witnessed a gain of 3.67% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 9.6%, and the S&P 500's gain of 5.88%.
The investment community will be paying close attention to the earnings performance of Fortinet in its upcoming release. The company is slated to reveal its earnings on August 6, 2025. It is anticipated that the company will report an EPS of $0.59, marking a 3.51% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.62 billion, up 12.9% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.48 per share and revenue of $6.75 billion, which would represent changes of +4.64% and +13.27%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Fortinet. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Fortinet currently has a Zacks Rank of #2 (Buy).
With respect to valuation, Fortinet is currently being traded at a Forward P/E ratio of 43.15. This signifies a discount in comparison to the average Forward P/E of 75.82 for its industry.
Meanwhile, FTNT's PEG ratio is currently 3.21. 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. FTNT's industry had an average PEG ratio of 3.21 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 42, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
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Fortinet, Inc. (FTNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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