[ad_1]
Cybersecurity is becoming more and more important thanks to the growing digital economy. Cybersecurity firm Fortinet (FTNT) is looking to expand its presence in the market and could become a trusted buyer in 2023.
Shutterstock.com – Stock News
As the digital economy grows, so does digital crime. Data breaches are increasingly threatening digital businesses. This also represents a substantial growth opportunity for the cybersecurity market.With a security solution penetration rate of about 10%, the total opportunity is A staggering $1.5 trillion to $2 trillion addressable market.
Cyber Security Company Fortinet, Inc. (FTNT) appear well-positioned to capitalize on industry growth. The company offers a wide range of integrated and automated cybersecurity solutions in several regions of the world. FTNT sells security solutions directly to channel partners and various customers.
The company recently announced that: Hired 5 new Managed Security Service Providers (MSSPs) Fortinet Secure SD-WAN enhances business outcomes and customer experience. This should increase FTNT’s presence in the market.
Additionally, in the last quarter, FTNT outperformed Consensus EPS estimates by 20.6% and Consensus earnings estimates by 2.3%. However, the stock has fallen 4.2% over the past three months and 2.7% over the past five days to close its final trading session at $47.86.
Here are the factors that could impact FTNT’s performance in the coming months:
strong finances
For the third quarter ended September 30, FTNT’s total revenue increased 32.6% year-over-year to $1.15 billion. Non-GAAP operating income increased 45.3% from the year-ago quarter to $324.9 million.
Non-GAAP net income attributable to FTNT and non-GAAP net income per share attributable to FTNT were $262.7 million and $0.33, respectively, an increase of 58.3% and 65%, respectively, from the prior-year period.
Favorable Analyst Quote
Consensus EPS estimates for the current (ending December 2022) and next (ending March 2023) quarters are $0.39 and $0.28, representing year-over-year increases of 56% and 47.4%, respectively. Consensus revenue estimates of $1.3 billion and $1.19 billion for the same period reflect year-over-year increases of 34.5% and 24.2%.
Street EPS and earnings estimates for the current year (fiscal 2022) are $1.15 billion and $4.43 billion, reflecting improvements of 43.7% and 32.6%, respectively, from the prior year. The company’s EPS is estimated to grow by 23.4% annually over the next five years.
solid profitability
FTNT trailing 12 months EBIT Margins of 20.06% and 18.12% and net profit margins are 202.9% and 458.2% higher than the industry average of 6.62% and 3.25% respectively. Its ROCE, ROTC and ROTA are 307.20%, 39.93% and 13.92%, which are significantly higher than the industry average of 5%, 3.24% and 1.52% respectively.
POWR Rating Reflects Promising Outlook
FTNT’s strong fundamentals are POWR ratingThe stock has an overall rating of B, which is equivalent to a buy in our proprietary rating system. The POWR Rating is calculated by considering 118 different factors, with each factor being optimally weighted.
Our proprietary rating system also evaluates each stock based on eight different categories. FTNT has a B grade of growth in sync with its improved financial situation. The stock has an A sentiment and quality grade, consistent with favorable analyst estimates and impressive profitability.
with 22 shares Software – Security No. 1 in the industry ranking.
click here To see additional POWR ratings for FTNT (Value, Momentum, and Stability),
Software – See all the top security industry stocks Here.
Conclusion
The rapid growth of the cybersecurity industry should boost FTNT’s growth. Wall Street analysts Stock price increase rate 37.2%could be a solid investment in 2023.
How does Fortinet, Inc. (FTNT) compare to its industry peers?
FTNT has an overall POWR rating of B, while peer Check Point Software Technologies Ltd.CHKP) and Radware Ltd. (RDWR), also an overall B (buy) rating.
FTNT shares were unchanged in pre-market trading on Thursday. Year-to-date, the FTNT is down -33.42%, while the benchmark S&P 500 Index is up -19.41% over the same period.
About the Author: Anushka Dutta
Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.
more…
post The 1 Cybersecurity Stock You Can Trust in 2023 first appeared StockNews.com
[ad_2]
Source link