Fortinet (FTNT) closed the latest trading day at $101.84, indicating a +1.11% change from the previous session's end. This change outpaced the S&P 500's 0.74% gain on the day. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq gained 1.26%.
The the stock of network security company has risen by 1.19% in the past month, leading the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77%.
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 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 latest consensus estimate predicts the revenue to be $1.54 billion, indicating a 13.54% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.44 per share and revenue of $6.74 billion, indicating changes of +2.95% and +13.13%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Fortinet should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the past month, there's been a 0.47% fall in the Zacks Consensus EPS estimate. Currently, Fortinet is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Fortinet has a Forward P/E ratio of 41.23 right now. For comparison, its industry has an average Forward P/E of 61.7, which means Fortinet is trading at a discount to the group.
Also, we should mention that FTNT has a PEG ratio of 3.17. 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. As of the close of trade yesterday, the Security industry held an average PEG ratio of 3.17.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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