Yahoo Finance Fortinet (FTNT) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Fortinet (FTNT) closed at $52.13, marking a -1.47% move from the previous day. This change lagged the S&P 500's daily loss of 0.74%. Meanwhile, the Dow lost 0.9%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Heading into today, shares of the network security company had lost 2.72% over the past month, lagging the Computer and Technology sector's gain of 6.65% and the S&P 500's gain of 3.74% in that time.
Wall Street will be looking for positivity from Fortinet as it approaches its next earnings report date. On that day, Fortinet is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.29 billion, up 34.16% from the year-ago period.
FTNT's full-year Zacks Consensus Estimates are calling for earnings of $1.15 per share and revenue of $4.43 billion. These results would represent year-over-year changes of +43.75% and +32.46%, respectively.
It is also important to note the recent changes to analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% higher. Fortinet currently has a Zacks Rank of #2 (Buy).
Investors should also note Fortinet's current valuation metrics, including its Forward P/E ratio of 46.1. This valuation marks a premium compared to its industry's average Forward P/E of 32.51.
Also, we should mention that FTNT has a PEG ratio of 2.56. 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 was holding an average PEG ratio of 2.51 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Fortinet, Inc. (FTNT) : Free Stock Analysis Report
