10 Best Performing Cybersecurity Stocks in 2024

3. Fortinet Inc. (NASDAQ:FTNT)

Year-to-Date Performance as of November 8: 59.29%

Number of Hedge Fund Holders: 42

Fortinet Inc. (NASDAQ:FTNT), a global leader in enterprise cybersecurity and networking, protects over 700,000 organizations worldwide, including enterprises, service providers, and government agencies. Its offerings span network firewalls, intrusion prevention, unified threat management, and advanced threat protection solutions.

Fortinet Inc. (NASDAQ:FTNT) is increasingly leveraging AI to improve its security capabilities. Its AI-driven assistant, FortiAI, now includes new tools to bolster threat detection and streamline incident investigation, including FortiAI for FortiNDR Cloud, designed to assist threat hunters by analyzing and correlating detections for better threat coverage insights, and FortiAI for Lacework FortiCNAPP, which equips security operations teams with enhanced alert clarity, offering guidance for remediation and corrective action through natural language queries. These integrations aim to optimize security analyst workflows and enable faster response to security incidents.

In its recent earnings report, Fortinet Inc. (NASDAQ:FTNT) surpassed analyst expectations for the third quarter. The company posted an adjusted EPS of $0.63, ahead of the $0.52 estimate, while quarterly revenue reached $1.51 billion, exceeding the consensus of $1.48 billion and marking a 13% year-over-year increase. Service revenue, the largest revenue component, rose 19.1% year-over-year to $1.03 billion, while product revenue saw a modest increase of 1.7% to $473.9 million. Fortinet Inc. (NASDAQ:FTNT) also raised its full-year 2024 guidance, now projecting revenue between $5.86 billion and $5.92 billion, aligning with analyst expectations.

Conestoga Capital Advisors stated the following regarding Fortinet, Inc. (NASDAQ:FTNT) in its Q3 2024 investor letter:

“Fortinet, Inc. (NASDAQ:FTNT) is the worldwide market share leader in network security firewalls (by units). During the quarter, FTNT reported a significant beat on billings and saw accelerating bookings growth, indicating the firewall product cycle may have turned positive. The company is also managing inventory well, and operating margins surprised to the upside in the reported quarter. FTNT maintains a healthy outlook for highly profitable growth.”