In the latest close session, Fortinet (FTNT) was down 1.96% at $83.60. This change lagged the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.34%.
The network security company's stock has climbed by 9.81% in the past month, exceeding the Computer and Technology sector's gain of 8.98% and the S&P 500's gain of 3.08%.
Investors will be eagerly watching for the performance of Fortinet in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.63, marking stability compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.7 billion, reflecting a 12.89% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.52 per share and revenue of $6.75 billion. These totals would mark changes of +6.33% and +13.29%, respectively, from last 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.34% higher within the past month. As of now, Fortinet holds a Zacks Rank of #3 (Hold).
In the context of valuation, Fortinet is at present trading with a Forward P/E ratio of 33.89. This indicates a discount in contrast to its industry's Forward P/E of 66.51.
Meanwhile, FTNT's PEG ratio is currently 2.82. 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 was holding an average PEG ratio of 2.78 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Fortinet, Inc. (FTNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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