In the latest trading session, Fortinet (FTNT) closed at $78.74, marking a +2.66% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.02% for the day. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 1.23%.
The stock of network security company has fallen by 8.08% in the past month, lagging the Computer and Technology sector's gain of 1.17% and the S&P 500's gain of 0.63%.
Investors will be eagerly watching for the performance of Fortinet in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 6, 2026. In that report, analysts expect Fortinet to post earnings of $0.61 per share. This would mark year-over-year growth of 5.17%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.73 billion, indicating a 12.43% increase compared to the same quarter of the previous year.
FTNT's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $7.6 billion. These results would represent year-over-year changes of +7.97% and +11.71%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Fortinet. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% higher. Fortinet presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Fortinet is holding a Forward P/E ratio of 25.78. This indicates a discount in contrast to its industry's Forward P/E of 29.51.
Also, we should mention that FTNT has a PEG ratio of 2.32. 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 average PEG ratio for the Security industry stood at 2.32 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Fortinet, Inc. (FTNT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).