Fortinet (FTNT) closed the most recent trading day at $158.67, moving -2.27% from the previous trading session. This change lagged the S&P 500's 0.45% loss on the day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 1.16%.
Shares of the network security company witnessed a gain of 13.5% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.38%, and the S&P 500's gain of 2.14%.
Market participants will be closely following the financial results of Fortinet in its upcoming release. The company plans to announce its earnings on July 29, 2026. On that day, Fortinet is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 17.19%. In the meantime, our current consensus estimate forecasts the revenue to be $1.88 billion, indicating a 15.44% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.14 per share and revenue of $7.8 billion, which would represent changes of +13.77% and +14.65%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Fortinet. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Fortinet currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Fortinet has a Forward P/E ratio of 51.64 right now. This represents a premium compared to its industry average Forward P/E of 50.85.
It is also worth noting that FTNT currently has a PEG ratio of 3.93. 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. Security stocks are, on average, holding a PEG ratio of 3.31 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 110, placing it within the top 45% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Fortinet, Inc. (FTNT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).