In the latest close session, Fortinet (FTNT) was up +1.97% at $160.62. The stock's change was more than the S&P 500's daily loss of 0.79%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 1.55%.
Shares of the network security company witnessed a gain of 7.66% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.44%, and the S&P 500's gain of 4.28%.
The investment community will be closely monitoring the performance of Fortinet in its forthcoming earnings report. The company is scheduled to release its earnings on July 29, 2026. The company is predicted to post an EPS of $0.75, indicating a 17.19% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.88 billion, up 15.44% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.15 per share and a revenue of $7.8 billion, demonstrating changes of +14.13% and +14.65%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.68% higher. As of now, Fortinet holds a Zacks Rank of #3 (Hold).
Digging into valuation, Fortinet currently has a Forward P/E ratio of 49.95. This represents no noticeable deviation compared to its industry average Forward P/E of 49.95.
Also, we should mention that FTNT has a PEG ratio of 3.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Security industry was having an average PEG ratio of 3.14.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 45% 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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Fortinet, Inc. (FTNT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).