Here's Why Fortinet (FTNT) Fell More Than Broader Market

Core Viewpoint - Fortinet is expected to report earnings that show growth in both EPS and revenue, indicating a positive outlook for the company in the network security sector [2][3]. Group 1: Stock Performance - Fortinet's stock closed at $83.44, reflecting a -1.14% change from the previous day, which is worse than the S&P 500's loss of 0.61% [1]. - Over the past month, Fortinet's shares have gained 0.17%, outperforming the Computer and Technology sector's loss of 1.56% and the S&P 500's loss of 2.25% [1]. Group 2: Earnings Estimates - The upcoming EPS for Fortinet is projected at $0.62, representing a 6.90% increase compared to the same quarter last year [2]. - Revenue is forecasted to be $1.73 billion, indicating a 12.43% growth year-over-year [2]. - For the full year, analysts expect earnings of $2.96 per share and revenue of $7.6 billion, marking changes of +7.25% and +11.71% respectively from last year [3]. Group 3: Analyst Revisions and Rankings - Recent changes to analyst estimates for Fortinet are important as they reflect the evolving business outlook, with positive revisions indicating optimism [3]. - Fortinet currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having increased by 0.16% over the past month [5]. Group 4: Valuation Metrics - Fortinet's Forward P/E ratio is 28.54, which is lower than the industry average of 38.01, suggesting a valuation discount [6]. - The PEG ratio for Fortinet is 2.57, compared to the industry average PEG ratio of 2.72 [6]. Group 5: Industry Context - The Security industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 92, placing it in the top 38% of over 250 industries [7]. - The top 50% rated industries are shown to outperform the bottom half by a factor of 2 to 1 [7].