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Fortinet (FTNT) closed the latest trading day at $96.62, indicating a +0.38% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 0.31%.
The network security company's stock has dropped by 13.79% in the past month, falling short of the Computer and Technology sector's loss of 11.22% and the S&P 500's loss of 7.69%.
The investment community will be closely monitoring the performance of Fortinet in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.53, marking a 23.26% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.54 billion, up 13.52% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.45 per share and revenue of $6.76 billion, which would represent changes of +3.38% and +13.49%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Fortinet. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.9% higher. Fortinet presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Fortinet is presently being traded at a Forward P/E ratio of 39.32. This indicates a discount in contrast to its industry's Forward P/E of 60.65.
It is also worth noting that FTNT currently has a PEG ratio of 3.02. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security was holding an average PEG ratio of 3.03 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 250+ industries.