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Fortinet (FTNT) Advances While Market Declines: Some Information for Investors

Fortinet (FTNT) closed at $60.78 in the latest trading session, marking a +0.91% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.12%.

Heading into today, shares of the network security company had lost 1.65% over the past month, outpacing the Computer and Technology sector's loss of 2.27% and lagging the S&P 500's gain of 4.15% in that time.

Market participants will be closely following the financial results of Fortinet in its upcoming release. It is anticipated that the company will report an EPS of $0.41, marking a 7.89% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.4 billion, up 8.6% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.75 per share and a revenue of $5.79 billion, signifying shifts of +7.36% and +9.22%, respectively, from the last year.

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Investors should also pay attention to any latest changes in analyst estimates for Fortinet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, the Zacks Consensus EPS estimate has shifted 0.39% upward. Currently, Fortinet is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Fortinet is at present trading with a Forward P/E ratio of 34.38. This expresses a premium compared to the average Forward P/E of 30.07 of its industry.

We can additionally observe that FTNT currently boasts a PEG ratio of 2.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.69.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 31% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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