- Fortinet (FTNT) demonstrates strong technical momentum and is trading at a new all-time high.
- Shares are up more than 100% over the past 52 weeks.
- Fundamentals remain robust with 19.41% projected revenue growth this year and 25% estimated earnings growth.
- Despite four “Strong Sell” analyst opinions, momentum investors should maintain positions with rational stop losses.
Today’s Featured Stock
Valued at $127 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.
The company’s network security gateways protect customer data, reduce security complexities and lower the total cost of ownership.
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 Aug. 27. The stock has gained 0.39% since that signal.
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 hit an all-time high of $181.37 on Sept. 24.
- Fortinet has a Weighted Alpha of 103.79.
- FTNT has a 100% “Buy” opinion from Barchart.
- The stock has gained 108.46% over the past 52 weeks.
- Fortinet has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $173.46 with a 50-day moving average of $161.56.
- FTNT had 7 highs and gained 12.89% in the last month.
- 60-month beta of 1.06.
- Relative Strength Index (RSI) is at 57.58.
- There’s a technical support level around $171.60.
Don’t Forget the Fundamentals
- $127 billion market capitalization.
- 61.61x trailing price-earnings ratio.
- Revenue is projected to grow by 19.41% this year and another 11.35% next year.
- Earnings are estimated to increase by 25.00% this year and an additional 9.50% next year.
Analyst and Investor Sentiment on Fortinet
- The Wall Street analysts followed by Barchart give the stock 8 “Strong Buy,” 29 “Hold,” and 4 “Strong Sell” opinions with price targets from $104 to $220. Quite a disagreement!
- Value Line rates the stock “Highest.”
- Morningstar thinks the stock is fairly valued.
- CFRA’s MarketScope rates the stock as “Sell” with a price target of $153.
- 65,520 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
- TipRanks’ analysts’ price target is $168.14.
- Short interest is 1.85% of the float with 3.05 days to cover the float.
The Bottom Line on Fortinet
Although there are four “Strong Sell” analyst opinions, I see no reason to sell at this point. Note that short interest is only 1.85% of the float and Value Line still rates this stock “Highest.” Momentum investors should put in a rational stop loss and ride the tide as long as the trend continues.
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.