Fortinet: A Tech Powerhouse Taming the Stock Market Bull

Discover why Fortinet (NASDAQ: FTNT) is charging ahead in the stock market. Unleash the power of smart investing!

WEALTH WORKSHOP

6/27/20232 min read

We often talk about the stock market in terms of wild beasts. Bears signify downtrends, while bulls represent uptrends. But there's a new creature that's left the bullish stock market giddy with its outstanding performance—Fortinet (NASDAQ: FTNT).

Let's dive into the financial jungle to understand why Fortinet has emerged as the alpha in the pack.

The Roaring Earnings

Nothing gets Wall Street more excited than robust earnings, and Fortinet has delivered quite a performance in this regard. With a whopping 79% EPS change in the last quarter and a consistent acceleration for four consecutive quarters, Fortinet is setting new records on the earnings front. This year's EPS is expected to grow by a respectable 33%, further stoking the market's enthusiasm.

A Sales Beast

On the sales front, the figures have been equally impressive. A growth rate of 32% in the last quarter and an exceptional three-year sales growth rate of 27.0% make it clear that Fortinet's sales team is a force to be reckoned with.

Robust Financial Health

While earnings and sales are critical, a company's financial health cannot be overlooked. And this is where Fortinet truly flexes its muscles. It boasts an impressive ROE of 384.6%, indicating that the company makes efficient use of shareholder funds.

Taming the Stock Market

For those looking at price and volume, the numbers are also promising. The current price of the stock is $71.59—just 4% off its 52-week high—and it's trading 6% above its 50-day moving average. This suggests a bullish trend, further affirmed by its market capitalization of a whopping $56.2 billion.

While the stock has been moderately purchased by institutional investors, the buying and selling volume has been well-balanced. This indicates that the market isn't just favoring buyers or sellers—Fortinet's appeal is universal.

In the end, it’s clear that Fortinet is not just another stock—it’s a powerhouse, charging ahead with a promise of performance. However, as the old adage goes, "Past performance is not indicative of future results". While the momentum is impressive, it’s critical for investors to thoroughly research and analyze before making investment decisions.

Remember, the stock market can be a wild place, but with careful analysis and informed decisions, you could just end up taming the bull!