Fortinet is the IBD Stock Of The Day, as the provider of cybersecurity software used by businesses to build firewalls, intrusion detection systems and antivirus programs is helping companies protect their valuable data. FTNT stock is nearing a buy point.
FTNT stock continues to consolidate after shares gapped up in reaction to fourth-quarter results on Feb. 7. During the quarter, revenue climbed 33% from the year-ago quarter to $1.28 billion, just below analyst views. Adjusted earnings came in at 44 cents a share, up 76%. That beat estimates, as did billings.
FTNT stock has been in a consolidation that now shows a 63.12 buy point. Also, the company's relative strength line is at its highest level since mid-July. The stock has gotten support at the 21-day exponential moving average the past few weeks and is close to forming a flat base.
Shares were down 1.6% Wednesday to 59.94 in afternoon action.
One way to find the best stocks during a choppy market is to look at their relative strength line. It compares a stock's performance with that of the S&P 500. When the RS line is climbing, this means the stock is outperforming the benchmark index.
FTNT Stock Near Top In Relative Strength
The RS line is a helpful tool for looking at top stocks that could break out soon or build new follow-on buy points. It can also work as a signal that a stock is reaching a top.
IBD Stock Checkup shows that FTNT stock has an IBD Composite Rating of 98 out of a best-possible 99. The rating means Fortinet currently outperforms 98% of all stocks. That's in terms of the most important fundamental and technical stock-picking criteria.
Fortinet has a Relative Strength Rating of 87 out of 99. The rating tracks market leadership by showing how a stock's price movement over the past 52 weeks measures up against that of all other stocks in IBD's database.
And FTNT stock has a best-possible EPS Rating of 99, meaning its recent quarterly and annual earnings growth is outpacing 99% of all stocks.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
