Fortinet (FTNT) closed the latest trading day at $97.81, indicating a +1.44% change from the previous session's end. This move outpaced the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.
The network security company's stock has climbed by 3.54% in the past month, falling short of the Computer and Technology sector's gain of 5.09% and outpacing the S&P 500's gain of 0.22%.
Investors will be eagerly watching for the performance of Fortinet in its upcoming earnings disclosure. The company is expected to report EPS of $0.60, up 17.65% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.59 billion, showing a 12.59% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.23 per share and a revenue of $5.89 billion, demonstrating changes of +36.81% and +11.01%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.4% higher within the past month. Fortinet currently has a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Fortinet is currently being traded at a Forward P/E ratio of 43.27. This valuation marks a premium compared to its industry's average Forward P/E of 32.85.
Investors should also note that FTNT has a PEG ratio of 2.37 right now. 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 Internet - Software industry had an average PEG ratio of 2.37 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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