Fortinet (FTNT) ended the recent trading session at $104.21, demonstrating a +0.43% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.63%. Elsewhere, the Dow saw an upswing of 0.21%, while the tech-heavy Nasdaq appreciated by 1.52%.
The network security company's shares have seen an increase of 5.79% over the last month, surpassing the Computer and Technology sector's gain of 1.66% and the S&P 500's loss of 0.7%.
Analysts and investors alike will be keeping a close eye on the performance of Fortinet in its upcoming earnings disclosure. The company's earnings report is set to go public on May 7, 2025. The company is expected to report EPS of $0.53, up 23.26% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.54 billion, indicating a 13.54% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $2.44 per share and a revenue of $6.74 billion, demonstrating changes of +2.95% and +13.13%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Fortinet. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. Fortinet is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Fortinet is currently exchanging hands at a Forward P/E ratio of 42.48. This valuation marks a discount compared to its industry's average Forward P/E of 66.01.
Meanwhile, FTNT's PEG ratio is currently 3.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security was holding an average PEG ratio of 3.26 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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