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Fortinet (FTNT) Gains As Market Dips: What You Should Know

Fortinet (FTNT) closed the most recent trading day at $314.66, moving +0.21% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq added 0.15%.

Heading into today, shares of the network security company had lost 0.76% over the past month, outpacing the Computer and Technology sector's loss of 1.8% and lagging the S&P 500's gain of 2.36% in that time.

Investors will be hoping for strength from Fortinet as it approaches its next earnings release, which is expected to be February 3, 2022. In that report, analysts expect Fortinet to post earnings of $1.14 per share. This would mark year-over-year growth of 7.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $960.88 million, up 28.46% from the year-ago period.

Any recent changes to analyst estimates for Fortinet should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 remained stagnant. Fortinet is currently a Zacks Rank #4 (Sell).

Looking at its valuation, Fortinet is holding a Forward P/E ratio of 67.93. For comparison, its industry has an average Forward P/E of 67.93, which means Fortinet is trading at a no noticeable deviation to the group.

It is also worth noting that FTNT currently has a PEG ratio of 4.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. FTNT's industry had an average PEG ratio of 3.73 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 235, which puts it in the bottom 8% 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
 
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