Fortinet (FTNT) closed the most recent trading day at $89.55, moving +0.03% from the previous trading session. This move outpaced the S&P 500’s daily loss of 0.33%. Elsewhere, the Dow lost 0.4%, while the tech-heavy Nasdaq lost 0.21%.
Coming into today, shares of the network security company had gained 10.61% in the past month. In that same time, the Computer and Technology sector gained 0.6%, while the S&P 500 gained 1.6%.
FTNT will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2018. The company is expected to report EPS of $0.42, up 50% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $451.02 million, up 20.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.67 per share and revenue of $1.78 billion. These totals would mark changes of +60.58% and +19.2%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for FTNT. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. FTNT is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that FTNT has a Forward P/E ratio of 53.74 right now. This valuation marks a discount compared to its industry’s average Forward P/E of 61.87.
We can also see that FTNT currently has a PEG ratio of 3.21. 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 Security industry currently had an average PEG ratio of 3.28 as of yesterday’s close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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