In the latest market close, Fortinet (FTNT) reached $96.13, with a +0.06% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.13%. Elsewhere, the Dow lost 1.33%, while the tech-heavy Nasdaq lost 0.13%.
The network security company's stock has dropped by 2.14% in the past month, exceeding the Computer and Technology sector's loss of 9.27% and the S&P 500's loss of 6.3%.
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 May 7, 2025. The company's upcoming EPS is projected at $0.53, signifying a 23.26% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.54 billion, up 13.52% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.45 per share and a revenue of $6.76 billion, indicating changes of +3.38% and +13.49%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.71% increase. 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 39.19. This valuation marks a discount compared to its industry's average Forward P/E of 59.27.
We can additionally observe that FTNT currently boasts a PEG ratio of 3.01. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Security stocks are, on average, holding a PEG ratio of 3.01 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 30% 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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