Core Insights - Fortinet's shares have increased by 68.8% over the past six months, significantly outperforming the Zacks Computer & Technology sector's growth of 14.8% and the Zacks Internet - Software industry's return of 31.5% [1] - The company has outperformed key competitors in the cybersecurity market, including Cisco Systems, Palo Alto Networks, and Check Point Software Technologies, which saw share price increases of 31.5%, 16.5%, and 6% respectively [2] Company Performance - Strong demand for Fortinet's cybersecurity solutions is attributed to the robust Fortinet Security Fabric platform and its cloud-based offerings, contributing to the positive movement in share price [3] - Fortinet's Secure Networking solutions integrate networking and security through FortiOS, delivering up to 5x better performance than competitors [4] - The flagship product, FortiGate, continues to see robust adoption, significantly driving revenue growth [5] Business Segments - In Q3 2024, Unified SASE accounted for 23% of Fortinet's business, with a 130% increase in the pipeline, highlighting the company's unique position in offering a complete SASE solution [6] - A notable upsell deal in Q3 2024 involved a retail customer expanding its SD-WAN deployment to include FortiSASE for 16,000 users, showcasing the value of the FortiOS platform [8] - An eight-figure deal with a multinational bank was secured to protect its hybrid architecture, emphasizing Fortinet's strength in safeguarding large-scale enterprises [9] Financial Outlook - For Q4 2024, Fortinet expects revenues between $1.56 billion and $1.62 billion, with non-GAAP earnings projected at 58-62 cents per share, indicating a year-over-year revenue growth of 12.59% [10] - For the full year 2024, revenues are projected between $5.86 billion and $5.92 billion, with non-GAAP earnings expected to be $2.20-$2.28 per share, reflecting an 11.01% year-over-year growth in revenues [12] - Fortinet has a history of strong quarterly performance, with earnings surpassing estimates in the last four quarters, averaging a surprise of 23.58% [12] Strategic Initiatives - Fortinet plans to announce GenAI for FortiAI in early 2025, aiming to enhance AI-based security operations and integrate generative AI across its product portfolio [7] - The company's cutting-edge AI security solutions and expanding customer base position it for strong growth, currently holding a Zacks Rank 2 (Buy) and a Growth Score of A [13]

Group 1 - Fortinet (NASDAQ: FTNT) is considered a strong investment opportunity despite competition in the cybersecurity sector from companies like CrowdStrike (CRWD) and Palo Alto Networks (PANW) [1] - The market is perceived to be underestimating Fortinet's potential, indicating a possible undervaluation [1] Group 2 - The author, Motti Sapir, has over 15 years of experience in financial markets and focuses on simplifying complex financial concepts [1] - The goal is to help investors understand market trends and make informed investment decisions [1]

Group 1: Company Performance - Fortinet (FTNT) closed at $98.24, with a daily increase of +1.07%, outperforming the S&P 500's gain of 0.61% [1] - Over the previous month, Fortinet's shares experienced a loss of 0.62%, underperforming compared to the Computer and Technology sector's gain of 1.24% and the S&P 500's gain of 2.08% [1] Group 2: Upcoming Financial Results - Fortinet is set to announce its earnings on February 6, 2025, with projected EPS of $0.60, indicating a 17.65% increase year-over-year [2] - The consensus estimate for Fortinet's revenue is $1.59 billion, reflecting a 12.59% rise from the same quarter last year [2] Group 3: Analyst Estimates and Ratings - Recent changes to analyst estimates for Fortinet suggest a favorable outlook on the company's business health and profitability [3] - The Zacks Rank system currently rates Fortinet as 1 (Strong Buy), with a historical average annual return of +25% for 1 stocks since 1988 [5] Group 4: Valuation Metrics - Fortinet has a Forward P/E ratio of 40.74, which is a premium compared to its industry's Forward P/E of 29.01 [5] - The PEG ratio for Fortinet is currently 2.19, aligning with the average PEG ratio of the Internet - Software industry [6] Group 5: Industry Ranking - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 41, placing it in the top 17% of over 250 industries [6][7]

Company Analysis - Fortinet's stock price ended at $93 83, reflecting a -0 77% shift from the previous trading day, underperforming the S&P 500's daily gain of 0 16% [4] - The stock has dropped by 3 46% in the past month, underperforming the Computer and Technology sector's loss of 1 29% and the S&P 500's loss of 2 2% [4] - Fortinet holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate moving 1 07% higher over the past month [2] - The company is forecasted to report an EPS of $0 60 in its upcoming earnings disclosure on February 6, 2025, a 17 65% increase from the prior year, with projected revenue of $1 59 billion, reflecting a 12 59% rise [7] - Fortinet has a Forward P/E ratio of 39 95, trading at a premium compared to the industry average of 28 07 [6] - The company's PEG ratio is 2 15, slightly below the Internet - Software industry average of 2 18 [8] Industry Analysis - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 29, placing it in the top 12% of all 250+ industries [3] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [3] Analyst Estimates and Market Trends - Positive revisions to analyst estimates for Fortinet signify optimism regarding the company's business and profitability [1] - Estimate changes are directly correlated with near-term stock prices, forming the basis of the Zacks Rank system [5]

Core Viewpoint - Fortinet's stock has increased by 51.4% over the past year, driven by strategic partnerships and strong financial performance, but investors should consider valuation concerns [1]. Group 1: Strategic Partnerships and Enterprise Growth - Fortinet's partnership with the Pittsburgh Steelers for the 2024-2025 season highlights its expanding enterprise presence and showcases its Security Fabric platform capabilities [4]. - The partnership includes the implementation of FortiGate Next-Generation Firewalls and FortiSwitch Ethernet switches, enhancing security for corporate operations and public Internet access [4]. - This 15-year relationship adds to Fortinet's portfolio of enterprise clients, including recent wins with the Vancouver Canucks, indicating strong customer retention and scalability [4]. Group 2: Financial Performance and Market Metrics - In Q3 2024, Fortinet reported total revenues of $1.508 billion, a 13% increase year-over-year [5]. - Service revenues, which account for 69% of total revenues, grew by 19% to $1.034 billion, while product revenues increased by 1.7% [5]. - The company achieved record gross margins of 83.2% and operating margins of 36.1%, reflecting strong operational efficiency [5]. Group 3: Competitive Landscape and Challenges - The cybersecurity market is highly competitive, with Fortinet facing challenges from established players like Palo Alto Networks, Cisco Systems, and others [6]. - Fortinet differentiates itself by being the only vendor using a single operating system across five secure networking solutions in the Gartner Magic Quadrant [6]. - Continuous innovation is essential for Fortinet to maintain its technological edge in the competitive landscape [6]. Group 4: Growth Catalysts and Innovation - Fortinet's expanded Security Operations portfolio, including Lacework FortiCNAPP and FortiDLP, represents a new $20 billion market opportunity [10]. - The AI-driven Security Operations business experienced 32% billings growth, contributing 10.5% to total business [10]. - Unified SASE billings grew by 14%, with security service edge billings increasing by 220% and pipeline growth of 130%, indicating strong market momentum [10]. Group 5: Macroeconomic Considerations - Potential headwinds include economic slowdowns and changes in corporate IT spending patterns, which could impact Fortinet's growth [11]. - The company's premium valuation suggests limited room for error in navigating these challenges while maintaining growth rates [11]. Group 6: Investment Outlook - Fortinet's solid fundamentals, market leadership, and strong partnerships present an intriguing investment opportunity [12]. - The expected refresh cycle of FortiGate products and expansion in AI-driven security solutions could drive additional growth [13]. - The Zacks Consensus Estimate for 2025 revenues is $6.6 billion, indicating a year-over-year growth of 10.07% [14].

Core Insights - Fortinet has expanded its partnership with the Pittsburgh Steelers, enhancing the use of the Fortinet Security Fabric platform for secure connectivity across various operations [1][2] - The Steelers have been a Fortinet customer for over 15 years, utilizing Fortinet solutions in multiple locations including Acrisure Stadium and training facilities [2][4] - Future integrations are being planned to further improve technology experiences for coaches, players, and fans beyond the 2024-2025 season [3] Company Overview - Fortinet is recognized as a leader in cybersecurity, focusing on the convergence of networking and security, with a mission to secure people, devices, and data globally [6] - The company offers a comprehensive portfolio of over 50 enterprise-grade products, trusted by more than half a million customers [6] Technology Implementation - The Fortinet Security Fabric enables the Steelers to integrate networking and security, enhancing visibility and performance while reducing risks [2][7] - Key technologies deployed include FortiGate Next-Generation Firewalls, FortiSwitch Ethernet switches, and FortiAP access points, ensuring secure and reliable internet access during events [7] - Fortinet's ZTNA and FortiClient are utilized for secure remote access, keeping employees connected to essential resources while on the road [7]

Core Insights - Fortinet has expanded its partnership with the Pittsburgh Steelers, enhancing the use of the Fortinet Security Fabric platform for secure connectivity across various network segments [1][2][3] - The Steelers have been a Fortinet customer for over 15 years, utilizing Fortinet solutions in multiple locations including Acrisure Stadium and training facilities [2][3] - Future integrations are being planned to further enhance technology experiences for coaches, players, and fans beyond the 2024-2025 season [4] Company and Industry Summary - Fortinet is recognized as a leader in cybersecurity, focusing on the convergence of networking and security, with a mission to secure people, devices, and data globally [10] - The Fortinet Security Fabric provides comprehensive protection and visibility across the Steelers' network, ensuring optimal performance and reducing risks [3][8] - Key technologies employed include FortiGate Next-Generation Firewalls, FortiAnalyzer for data insights, and FortiClient for secure remote access, enhancing both corporate and in-stadium operations [8]

Fortinet joins leaders from government, business, and civil society to contribute insights into addressing today’s most pressing cybersecurity challengesSUNNYVALE, Calif., Jan. 08, 2025 (GLOBE NEWSWIRE) -- John Whittle, Chief Operating Officer at Fortinet“Building on our longstanding and multi-faceted partnership with the World Economic Forum, Fortinet will join heads of state, other private-sector leaders, and prominent voices from civil society and academia at this year’s Annual Meeting to collectively h ...

SUNNYVALE, Calif., Jan. 02, 2025 (GLOBE NEWSWIRE) -- News Summary Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, announced that it will hold a conference call to discuss its fourth quarter and full year 2024 financial results on Thursday, February 6, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). Fortinet's financial results conference call will be broadcast live in listen-only mode on the company’s investor relations website at http://inv ...

Fortinet (FTNT) closed the latest trading day at $97.81, indicating a +1.44% change from the previous session's end. This move outpaced the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.The network security company's stock has climbed by 3.54% in the past month, falling short of the Computer and Technology sector's gain of 5.09% and outpacing the S&P 500's gain of 0.22%.Investors will be eagerly watching for the performance of Fortinet in its ...