Fortinet (FTNT) Laps the Stock Market: Here's Why

In the latest trading session, Fortinet (FTNT) closed at $84.32, marking a +1.33% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.65%, and the technology-dominated Nasdaq saw an increase of 0.44%. The network security company's shares have seen an increase of 4.94% over the last month, not keeping up with the Computer and Technology sector's gain of 7.68% and outstripping the S&P 500's gain of 2.72%.Analysts and investors alike will be keeping a close eye on the performance of Fortinet in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.63, signifying steadiness compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.7 billion, up 12.89% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $2.52 per share and a revenue of $6.75 billion, demonstrating changes of +6.33% and +13.29%, respectively, from the preceding year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.34% higher. Fortinet is currently a Zacks Rank #3 (Hold). Valuation is also important, so investors should note that Fortinet has a Forward P/E ratio of 33.07 right now. This expresses a discount compared to the average Forward P/E of 65.88 of its industry. It is also worth noting that FTNT currently has a PEG ratio of 2.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Security stocks are, on average, holding a PEG ratio of 2.73 based on yesterday's closing prices. The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fortinet, Inc. (FTNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks