Fortinet (FTNT) Stock Drops Despite Market Gains: Important Facts to Note

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]