Fortinet (FTNT) closed at $68.01 in the latest trading session, marking a -1.43% move from the prior day. This move lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 4.09%.
Heading into today, shares of the network security company had gained 2.22% over the past month, lagging the Computer and Technology sector's gain of 9.32% and the S&P 500's gain of 3.98% in that time.
Wall Street will be looking for positivity from Fortinet as it approaches its next earnings report date. The company is expected to report EPS of $0.34, up 41.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.3 billion, up 26.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.46 per share and revenue of $5.46 billion, which would represent changes of +22.69% and +23.64%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Fortinet. 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. 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.
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 0.34% higher within the past month. Fortinet currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Fortinet is currently trading at a Forward P/E ratio of 47.16. For comparison, its industry has an average Forward P/E of 41.35, which means Fortinet is trading at a premium to the group.
Meanwhile, FTNT's PEG ratio is currently 2.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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