Fortinet (FTNT) closed at $85.02 in the latest trading session, marking a -0.2% move from the prior day. This change lagged the S&P 500's 0.08% loss on the day. At the same time, the Dow added 0.06%, and the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the network security company had gained 0.83% in the past month. In that same time, the Computer and Technology sector gained 3.22%, while the S&P 500 gained 0.52%.
Investors will be hoping for strength from FTNT as it approaches its next earnings release. The company is expected to report EPS of $0.39, up 18.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $471.57 million, up 18.19% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.07 per share and revenue of $2.08 billion. These totals would mark changes of +12.5% and +15.69%, respectively, from last year.
Any recent changes to analyst estimates for FTNT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FTNT is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, FTNT is holding a Forward P/E ratio of 41.06. Its industry sports an average Forward P/E of 44.31, so we one might conclude that FTNT is trading at a discount comparatively.
Meanwhile, FTNT's PEG ratio is currently 2.45. 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 2.45 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 39, which puts it in the top 16% 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.
Fortinet, Inc. (FTNT): Free Stock Analysis Report
Original post