Fortinet (FTNT) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Fortinet (FTNT) closed at $137.96, marking a -1.25% move from the previous day. This change lagged the S&P 500's 1.08% loss on the day. Elsewhere, the Dow lost 1.51%, while the tech-heavy Nasdaq lost 0.86%.

Coming into today, shares of the network security company had gained 1.59% in the past month. In that same time, the Computer and Technology sector gained 5.89%, while the S&P 500 lost 0.3%.

Investors will be hoping for strength from FTNT as it approaches its next earnings release, which is expected to be August 6, 2020. On that day, FTNT is projected to report earnings of $0.65 per share, which would represent year-over-year growth of 12.07%. Meanwhile, our latest consensus estimate is calling for revenue of $598.82 million, up 14.78% from the prior-year quarter.

FTNT's full-year Zacks Consensus Estimates are calling for earnings of $2.81 per share and revenue of $2.50 billion. These results would represent year-over-year changes of +13.77% and +15.92%, respectively.

Investors might also notice recent changes to analyst estimates for FTNT. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 2.37% higher within the past month. FTNT is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, FTNT is currently trading at a Forward P/E ratio of 49.8. This valuation marks a premium compared to its industry's average Forward P/E of 49.23.

It is also worth noting that FTNT currently has a PEG ratio of 3.56. 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 was holding an average PEG ratio of 2.69 at yesterday's closing price.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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 Report
 
To read this article on Zacks.com click here.