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 Fortinet ( FTNT) 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 $63.4 million.
- FTNT is up 3.4% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in FTNT with the Ticky from Trade-Ideas. See the FREE profile for FTNT NOW at Trade-Ideas More details on FTNT: Fortinet, Inc. provides network security solutions worldwide. FTNT has a PE ratio of 44.7. Currently there are 16 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 3.6 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 2.18 and a short float of 4.9% with 0.97 days to cover. Shares are up 16% year-to-date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Fortinet as a hold. 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Highlights from the ratings report include:
- FTNT's revenue growth has slightly outpaced the industry average of 10.9%. Since the same quarter one year prior, revenues rose by 17.3%. 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 1.52, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for FORTINET INC is currently very high, coming in at 71.94%. Regardless of FTNT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FTNT's net profit margin of 6.77% is significantly lower than the industry average.
- Net operating cash flow has declined marginally to $46.67 million or 7.20% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, FORTINET INC has marginally lower results.
- The share price of FORTINET INC has not done very well: it is down 10.39% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full Fortinet Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.