/Fortinet%20Inc%20Silicon%20Valley%20office%20sign-by%20Sundry%20Photography%20via%20Shutterstock.jpg)
Sunnyvale, California-based Fortinet, Inc. (FTNT) provides network security appliances and unified threat management network security solutions to enterprises, service providers, and government entities. With a market cap of $57.4 billion, Fortinet operations span various countries in North America, Latin America, EMEA, and Asia-Pacific.
Companies worth $10 billion or more are generally described as "large-cap stocks," Fortinet fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the software infrastructure industry. It has more than 755,000 customers who trust its solutions for cybersecurity protection.
Fortinet has slipped 4% from its 52-week high of $78.08 achieved on Sep. 3. However, FTNT stock has gained 25.8% over the past three months, outpacing the Dow Jones Industrials Average’s ($DOWI) 5.2% gains during the same time frame.
Over the longer term, FTNT has gained 17.2% over the past 52 weeks, slightly lagging behind DOWI’s 18.1% gains during the same time frame. However, in 2024, FTNT has gained 28.3%, substantially outperforming the DOWI’s 8.3% returns on a YTD basis.
To confirm the recent bullish trend, FTNT has traded above its 50-day and 200-day moving averages since early August.
Shares of Fortinet soared by 25.3% after the release of its better-than-expected Q2 earnings on Aug. 6. The cybersecurity firm reported a solid 11% annual revenue growth, amounting $1.4 billion. Highlighting its effective cost management, Fortinet reduced its cost of revenue by 6.1% to $275 million. Consequently, its net income grew by a remarkable 42.6% to $379.8 million, while its EPS of $0.50 surpassed the consensus estimates by 51.5%.
Fortinet’s competitor, Palo Alto Networks, Inc. (PANW), gained 38.3% over the past 52 weeks outperforming FTNT’s performance during the same time frame. However, in 2024, PANW gained 16.7%, lagging behind FTNT’s returns on a YTD basis.
Among the 36 analysts covering the FTNT stock, the consensus rating is a “Moderate Buy.” Although FTNT is trading above its mean price target of $72.29, the Street-high target of $87 represents a potential upside of 15.8% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
