In the latest close session, Fortinet (FTNT) was up +2.47% at $77.62. This move outpaced the S&P 500's daily gain of 0.55%. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.91%.
Shares of the network security company witnessed a loss of 6.69% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.04%, and the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of Fortinet in its upcoming release. The company plans to announce its earnings on February 5, 2026. The company is expected to report EPS of $0.74, unchanged from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.86 billion, indicating a 11.91% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.69 per share and a revenue of $6.75 billion, signifying shifts of +13.5% and 0%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Fortinet. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.44% rise in the Zacks Consensus EPS estimate. At present, Fortinet boasts a Zacks Rank of #3 (Hold).
Investors should also note Fortinet's current valuation metrics, including its Forward P/E ratio of 26.23. This valuation marks a discount compared to its industry average Forward P/E of 51.09.
It's also important to note that FTNT currently trades at a PEG ratio of 2.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security industry currently had an average PEG ratio of 2.6 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 40% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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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