Fortinet (FTNT) closed at $96.26 in the latest trading session, marking a -0.35% move from the prior day. This change lagged the S&P 500's daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 1.01%, while the tech-heavy Nasdaq depreciated by 0.14%.
Coming into today, shares of the network security company had lost 10.56% in the past month. In that same time, the Computer and Technology sector lost 8.88%, while the S&P 500 lost 6.22%.
Investors will be eagerly watching for the performance of Fortinet in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.53, showcasing a 23.26% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.54 billion, up 13.52% from the year-ago period.
FTNT's full-year Zacks Consensus Estimates are calling for earnings of $2.46 per share and revenue of $6.76 billion. These results would represent year-over-year changes of +3.8% and +13.49%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Fortinet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.29% higher. As of now, Fortinet holds a Zacks Rank of #3 (Hold).
Investors should also note Fortinet's current valuation metrics, including its Forward P/E ratio of 39.34. For comparison, its industry has an average Forward P/E of 60.54, which means Fortinet is trading at a discount to the group.
It's also important to note that FTNT currently trades at a PEG ratio of 3.02. 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. As of the close of trade yesterday, the Security industry held an average PEG ratio of 3.08.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Fortinet, Inc. (FTNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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