Here's Why Fortinet (FTNT) Gained But Lagged the Market Today
Fortinet (FTNT) closed the most recent trading day at $75.66, moving +1.31% from the previous trading session. This change lagged the S&P 500's 1.7% gain on the day. On the other hand, the Dow registered a gain of 1.26%, and the technology-centric Nasdaq increased by 2.51%.
Shares of the network security company have depreciated by 0.98% over the course of the past month, outperforming the Computer and Technology sector's loss of 1.45% and lagging the S&P 500's gain of 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of Fortinet in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.51, indicating a 24.39% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.48 billion, reflecting a 10.7% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2 per share and revenue of $5.85 billion. These totals would mark changes of +22.7% and +10.22%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Fortinet. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.96% rise in the Zacks Consensus EPS estimate. Fortinet is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, Fortinet is presently trading at a Forward P/E ratio of 37.41. This valuation marks a premium compared to its industry's average Forward P/E of 31.34.
Investors should also note that FTNT has a PEG ratio of 2.3 right now. 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 of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.01.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 32% 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 Report