Fortinet (FTNT) closed at $101.71 in the latest trading session, marking a -2.92% move from the prior day. This move lagged the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, added 0.15%.
The stock of network security company has risen by 2.28% in the past month, lagging the Computer and Technology sector's gain of 4.69% and the S&P 500's gain of 3.39%.
The upcoming earnings release of Fortinet will be of great interest to investors. The company's earnings report is expected on August 6, 2025. The company's upcoming EPS is projected at $0.59, signifying a 3.51% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.62 billion, up 12.9% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.48 per share and a revenue of $6.75 billion, representing 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 help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 has remained steady. Fortinet currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Fortinet is holding a Forward P/E ratio of 42.27. This represents a discount compared to its industry average Forward P/E of 75.15.
We can additionally observe that FTNT currently boasts a PEG ratio of 3.15. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. 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. Currently, this industry holds a Zacks Industry Rank of 31, positioning it in the top 13% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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