In the latest trading session, Fortinet (FTNT) closed at $51.92, marking a -0.48% move from the previous day. This change was narrower than the S&P 500’s 1.11% loss on the day. Elsewhere, the Dow lost 0.85%, while the tech-heavy Nasdaq added 0.1%.
Coming into today, shares of the network security company had lost 3.64% in the past month. In that same time, the Computer and Technology sector lost 4.59%, while the S&P 500 lost 2.19%.
Investors will be hoping for strength from Fortinet as it approaches its next earnings release. On that day, Fortinet is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.29 billion, up 34.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.15 per share and revenue of $4.43 billion. These totals would mark changes of +43.75% and +32.46%, respectively, from last year.
Any recent changes to analyst estimates for Fortinet should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.86% higher within the past month. Fortinet is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Fortinet has a Forward P/E ratio of 45.45 right now. This represents a premium compared to its industry’s average Forward P/E of 31.55.
It is also worth noting that FTNT currently has a PEG ratio of 2.53. 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. The Security was holding an average PEG ratio of 2.48 at yesterday’s closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% 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.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the
Zacks Top 10 Stocks
portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
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
