Fortinet, Inc. (FTNT), headquartered in Sunnyvale, California, provides cybersecurity and convergence of networking and security solutions. Valued at $60.3 billion by market cap, the company offers network security appliances, software, and subscription services. Fortinet systems integrate the industry's broadest suite of security technologies, including firewall, VPN, antivirus, intrusion prevention (IPS), web filtering, antispam, and traffic shaping.

Shares of this cybersecurity giant have outperformed the broader market considerably over the past year. FTNT has gained 37.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.2%. In 2024, FTNT stock is up 34.6%, surpassing SPX’s 20.1% rise on a YTD basis. 

Zooming in further, FTNT’s outperformance looks more pronounced compared to Xtrackers Cybersecurity Select Equity ETF (PSWD). The exchange-traded fund has gained about 30.6% over the past year. Moreover, FTNT’s gains on a YTD basis outshine the ETF’s 4.3% returns over the same time frame.

FTNT has been outperforming the cybersecurity sector, thanks to its innovative cloud-based security solution, FortiSASE, which caters to increased spending on cybersecurity. With advanced SecOps solutions like FortiAI, utilizing GenAI technology, Fortinet is gaining popularity among large enterprises. To meet the evolving cybersecurity needs of businesses, Fortinet has introduced FortiDLP, a next-generation data loss prevention and insider risk management solution that enhances data security, enforcement, and visibility for large enterprises.

On Aug. 6, FTNT reported its Q2 results and its shares rose more than 23% in the following trading session. Its adjusted EPS of $0.57 exceeded Wall Street expectations of $0.41. The company’s revenue was $1.43 billion, beating Wall Street forecasts of $1.4 billion. For Q3, FTNT expects its adjusted EPS to be between $0.50 and $0.52, and expects revenue to be between $1.45 billion and $1.51 billion.

For the current fiscal year, ending in December, analysts expect FTNT’s EPS to grow 19.1% to $1.75 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 36 analysts covering FTNT stock, the consensus is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buy,” 22 “Holds,” and one “Strong Sell.”

This configuration is more bullish than three months ago, with 11 analysts suggesting a “Strong Buy,” and two giving a “Moderate Buy.”

On Oct. 28, Robert W. Baird analyst Shrenik Kothari maintained a “Buy” rating on FTNT with a price target of $80, implying a potential upside of 1.5% from current levels.

While FTNT currently trades above its mean price target of $77.37, the Street-high price target of $105 suggests an upside potential of 33.2%. 

More Stock Market News from Barchart

• Are Wall Street Analysts Bullish on Kenvue Stock?
• US Election, FOMC and Other Key Things to Watch this Week
• McDonald's Hikes Its Dividend 6% - MCD Stock's 2.40% Yield Attracts Value Buyers
• 3 Disruptive Tech ETFs That Are Beating Cathie Wood's Flagship Fund This Year

On the date of publication, Neha Panjwani 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.