Fortinet (FTNT) shares rallied 3.4% in the last trading session to close at $333.83. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 6% loss over the past four weeks.
The increase in share price can be attributed to higher demand for Fortinet’s security and networking products amid coronavirus crisis as a huge global workforce continues to work remotely. The hybrid work innovation is also fueling demand for robust cybersecurity solutions. The company is benefiting from solid growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network (SD-WAN) offerings.
Strong traction witnessed for FortiGuard security subscriptions and FortiCare technical support services is driving Fortinet’s Services segment.
A few days back, Fortinet was also added to the Nasdaq-100 Index which comprises 100 biggest non-financial companies listed on Nasdaq stock market.
This network security company is expected to post quarterly earnings of $1.14 per share in its upcoming report, which represents a year-over-year change of +7.6%. Revenues are expected to be $960.88 million, up 28.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Fortinet, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on FTNT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
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