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

Fortinet (FTNT) closed the most recent trading day at $84.40, moving +1.1% from the previous trading session. This change outpaced the S&P 500's 1.52% loss on the day. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, lost 1.78%.

Prior to today's trading, shares of the network security company had lost 4.94% lagged the Computer and Technology sector's loss of 1.66% and the S&P 500's loss of 2.25%.

Analysts and investors alike will be keeping a close eye on the performance of Fortinet in its upcoming earnings disclosure. The company is expected to report EPS of $0.62, up 6.9% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.73 billion, up 12.43% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.96 per share and a revenue of $7.6 billion, representing changes of +7.25% and +11.71%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Fortinet. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.16% higher. Right now, Fortinet possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Fortinet is presently trading at a Forward P/E ratio of 28.23. This valuation marks a discount compared to its industry average Forward P/E of 38.56.

We can also see that FTNT currently has a PEG ratio of 2.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Security industry held an average PEG ratio of 2.72.

The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 36% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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