Fortinet Stock Is Still a Buy After Hitting New All-Time Highs

• Fortinet (FTNT) demonstrates strong momentum, with a 98% gain over the past year.
• FTNT is projected to grow revenue 19.41% this year and 10.97% next year, with earnings expected to rise 25.02% and 8.95%, respectively.
• Analyst sentiment is broadly positive with price targets ranging from $102 to $220.
• Technical indicators and investor sentiment suggest FTNT still has room to run, supported by robust fundamentals and moderate short interest.

Today’s Featured Stock

Valued at $117 billion, Fortinet (FTNT) is a provider of network security appliances and Unified Threat Management network security solutions to enterprises, service providers, and government entities worldwide. Its solutions are designed to integrate multiple levels of security protection, including firewall, virtual private networking (VPN), antivirus, intrusion prevention, web filtering, anti-spam and wide area network acceleration.

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. FTNT checks those boxes. The Trend Seeker issued a new “Buy” signal on July 31. Since then, the stock has declined 3.25%.

Barchart’s Technical Indicators for Fortinet

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Fortinet scored an all-time high of $172.09 on Aug. 5.

• Fortinet has a Weighted Alpha of 92.95.
• FTNT has an 88% “Buy” opinion from Barchart.
• The stock has gained 98% over the past 52 weeks.
• Fortinet has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $157.32 with a 50-day moving average of $155.07.
• FTNT lost 3.08% over the past month.
• 60-month beta of 1.07.
• Relative Strength Index (RSI) is at 48.71.
• There’s a technical support level around $157.49.

Don’t Forget the Fundamentals

• $117 billion market capitalization.
• 57.05x trailing price-earnings ratio.
• Revenue is expected to grow 19.41% this year and another 10.97% next year.
• Earnings are estimated to increase 25.02% this year and an additional 8.95% next year

Analyst and Investor Sentiment on Fortinet

• The Wall Street analysts followed by Barchart give the stock 9 “Strong Buy,” 28 “Hold,” and 4 “Strong Sell” opinions with price targets between $102 and $220.
• Value Line rates the stock “Highest” with price targets from $135 to $200.
• CFRA’s MarketScope rates the stock a “Sell” with a price target of $153.
• Morningstar thinks the stock is fairly valued.
• 64,840 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
• TipRanks gives it a Smart Score of 10 with their analysts’ consensus price target at $165.18.
• Short interest is only 1.98% of the float with 3.13 days to cover the float.

The Bottom Line on Fortinet

FTNT has solid projections of increases in both revenue and earnings. With analysts and individual investors showing positive sentiment, this stock still has room to run.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be  buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten 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.