Fortinet (FTNT) Stock Sinks As Market Gains: Here's Why

Fortinet (FTNT) closed at $100.20 in the latest trading session, marking a -6.92% move from the prior day. This move lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.09%. Coming into today, shares of the network security company had gained 5.52% in the past month. In that same time, the Computer and Technology sector gained 6.2%, while the S&P 500 gained 4.37%. The upcoming earnings release of Fortinet will be of great interest to investors. The company's earnings report is expected on August 6, 2025. The company is forecasted to report an EPS of $0.59, showcasing a 3.51% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.62 billion, up 12.94% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $2.48 per share and a revenue of $6.75 billion, demonstrating changes of +4.64% and +13.36%, respectively, from the preceding year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Fortinet. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. 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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Fortinet boasts a Zacks Rank of #2 (Buy). Looking at its valuation, Fortinet is holding a Forward P/E ratio of 43.44. This denotes a discount relative to the industry average Forward P/E of 77.93. One should further note that FTNT currently holds a PEG ratio of 3.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Security industry stood at 3.23 at the close of the market yesterday. The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250. The Zacks Industry Rank is ordered 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. Should You Invest in Fortinet, Inc. (FTNT)?Before you invest in Fortinet, Inc. (FTNT), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)Want 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