In the latest close session, Fortinet (FTNT) was up +1.83% at $174.05. The stock's performance was ahead of the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.05%.
The network security company's stock has dropped by 1.91% in the past month, exceeding the Computer and Technology sector's loss of 2.67% and lagging the S&P 500's gain of 0.97%.
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 October 28, 2026. The company is expected to report EPS of $0.86, up 16.22% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.06 billion, showing a 19.55% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.45 per share and a revenue of $8.12 billion, representing changes of +25% and +19.38%, 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.77% higher. Fortinet is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Fortinet is currently exchanging hands at a Forward P/E ratio of 49.59. This represents no noticeable deviation compared to its industry average Forward P/E of 49.59.
One should further note that FTNT currently holds a PEG ratio of 2.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Security industry had an average PEG ratio of 2.95.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Fortinet, Inc. (FTNT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).