Fortinet Inc. (FTNT): Today's Featured Technology Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Fortinet ( FTNT) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Fortinet fell 24 cents (-1.2%) to $19.34 on light volume. Throughout the day, 2.1 million shares of Fortinet exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in price between $19.26-$19.68 after having opened the day at $19.68 as compared to the previous trading day's close of $19.58. Other companies within the Technology sector that declined today were: Parametric Sound ( PAMT), down 12.6%, Bazaarvoice ( BV), down 11.2%, Faro Technologies ( FARO), down 11.2%, and QuinStreet ( QNST), down 7.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Fortinet, Inc., together with its subsidiaries, provides network security solutions to enterprises, service providers, and government entities worldwide. Fortinet has a market cap of $3.07 billion and is part of the computer software & services industry. The company has a P/E ratio of 51.8, above the S&P 500 P/E ratio of 17.7. Shares are down 8.8% year to date as of the close of trading on Thursday. Currently there are 16 analysts that rate Fortinet a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Fortinet as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Unwired Planet ( UPIP), up 42.8%, TranSwitch Corporation ( TXCC), up 26.7%, Infosys ( INFY), up 18.8%, and India ( REDF), up 17.9%, were all gainers within the technology sector with Accenture ( ACN) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

HOLIDAY SPECIAL: Let Jim Cramer show you every trade he is making in his $2.5 Million portfolio. Join now for 14-days FREE. Sign up today to get e-mail alerts before every trade.