FORTINET

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The security hardware specialist is one of the beneficiaries of Cisco's ( CSCO) recent struggles. Whereas Cisco's security business grew just 2% year-over-year in its recent quarterly results, Fortinet enjoyed a 48% hike in sales of its security products.

"As security becomes more and more important over time, the wind is at their back," Roger Kay, an analyst at Endpoint Technologies told TheStreet. "Fortinet's stock performance is very steady, they have barely had a glitch."

Fortinet owes its success to its FortiGate appliance, an all-in-one security product that combines firewall, anti-virus, VPN and intrusion prevention systems.

Publicly traded for less than two years, the firm is acknowledged as a leader in an area known as Unified Threat Management (UTM), whereby businesses tackle multiple security threats via a single device.

Fortinet's stock has risen almost 180% since its IPO, an upward trajectory expected continue. During the firm's first-quarter results, Fortinet reported that it grew its revenue 34% compared to the prior year's quarter, boosted its cash position, and raised its guidance for fiscal 2011.

Crucially for investors, Fortinet also has an impressive forward price-to-earnings ratio of 57.52, hinting at future earnings growth. The average forward multiple for the S&P 500 is 12.9.

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