Fortinet (FTNT) ended the recent trading session at $105.72, demonstrating a +2.53% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.52%. Elsewhere, the Dow saw an upswing of 0.63%, while the tech-heavy Nasdaq appreciated by 0.48%.
Coming into today, shares of the network security company had gained 1.31% in the past month. In that same time, the Computer and Technology sector gained 7.56%, while the S&P 500 gained 4.27%.
Analysts and investors alike will be keeping a close eye on the performance of Fortinet in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.59, marking a 3.51% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.62 billion, indicating a 12.94% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.48 per share and a revenue of $6.75 billion, signifying shifts of +4.64% and +13.36%, respectively, from the last year.
Any recent changes to analyst estimates for Fortinet should also be noted by investors. 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 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, 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, the Zacks Consensus EPS estimate has moved 0.23% higher. Fortinet is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Fortinet is currently exchanging hands at a Forward P/E ratio of 41.6. This represents a discount compared to its industry average Forward P/E of 75.4.
It's also important to note that FTNT currently trades at a PEG ratio of 3.1. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Security stocks are, on average, holding a PEG ratio of 3.1 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 27, finds itself in the top 11% echelons 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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