Fortinet (FTNT) closed the most recent trading day at $101.17, moving +0.22% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.6%. Elsewhere, the Dow lost 1.84%, while the tech-heavy Nasdaq lost 0.95%.
Prior to today's trading, shares of the network security company had lost 8.31% over the past month. This has was narrower than the Computer and Technology sector's loss of 9.68% and the S&P 500's loss of 10.82% in that time.
Wall Street will be looking for positivity from FTNT as it approaches its next earnings report date. On that day, FTNT is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 52.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $568.62 million, up 20.32% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.65 per share and revenue of $2.56 billion. These totals would mark changes of +7.29% and +18.76%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for FTNT. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.5% lower. FTNT is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, FTNT currently has a Forward P/E ratio of 38.13. This represents a premium compared to its industry's average Forward P/E of 36.85.
We can also see that FTNT currently has a PEG ratio of 2.72. 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 2.44 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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