Fortinet (FTNT) closed the most recent trading day at $72.78, moving -1.1% from the previous trading session. This move lagged the S&P 500's daily loss of 0.37%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 1.18%.
Prior to today's trading, shares of the network security company had gained 8% over the past month. This has lagged the Computer and Technology sector's gain of 12.92% and outpaced the S&P 500's gain of 7.18% in that time.
Investors will be hoping for strength from Fortinet as it approaches its next earnings release. On that day, Fortinet is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 41.67%. Our most recent consensus estimate is calling for quarterly revenue of $1.3 billion, up 26.41% from the year-ago period.
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. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.34% higher. Fortinet is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Fortinet is currently trading at a Forward P/E ratio of 50.3. This valuation marks a premium compared to its industry's average Forward P/E of 42.11.
Also, we should mention that FTNT has a PEG ratio of 2.79. 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 Internet - Software industry currently had an average PEG ratio of 1.82 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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