Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Fortinet as such a stock due to the following factors:
- FTNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $134.1 million.
- FTNT is up 3.9% today from today's close.
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More details on FTNT:
Fortinet, Inc. provides network security solutions worldwide. FTNT has a PE ratio of 67.3. Currently there are 14 analysts that rate Fortinet a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Fortinet has been 2.7 million shares per day over the past 30 days. Fortinet has a market cap of $3.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 2.27 and a short float of 1.9% with 0.45 days to cover. Shares are up 15% year-to-date as of the close of trading on Tuesday.
rates Fortinet as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- FTNT's revenue growth has slightly outpaced the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 13.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- FTNT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, FTNT has a quick ratio of 1.69, which demonstrates the ability of the company to cover short-term liquidity needs.
- FORTINET INC's earnings per share declined by 30.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FORTINET INC increased its bottom line by earning $0.40 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($0.46 versus $0.40).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 35.9% when compared to the same quarter one year ago, falling from $17.21 million to $11.03 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Software industry and the overall market, FORTINET INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full Fortinet Ratings Report.