10 Most Profitable NASDAQ Stocks To Invest In

5. Fortinet Inc. (NASDAQ:FTNT)

TTM Net Income: $1.31 billion

5-Year Net Income CAGR: 28.51%

Number of Hedge Fund Holders: 42  

Fortinet Inc. (NASDAQ:FTNT) is a leader in enterprise-class cybersecurity and networking innovation, securing 700,000+ enterprises, service providers, and government organizations worldwide. Its products and services include network firewalls, intrusion prevention systems, unified threat management, and advanced threat protection. It’s known for its innovative technology and commitment to protecting customers from the latest cyberattacks.

The company’s total revenue reached $1.43 billion in the second quarter of 2024, a 10.95% increase year-over-year. Service revenue grew even faster, reaching $982 million, up 20% from the previous year. Its investments in Unified SASE and Secure Ops markets, along with the acquisitions of Lacework and Next DLP, primarily drove this strong growth. Service revenue increased by 24%, anticipating a CAGR of 18% for the next 5 years.

The company is investing in AI to enhance threat detection and security monitoring. AI-driven Secure Ops accounted for 10% of total building in the second quarter. Just on October 8, the company introduced Lacework FortiCNAPP, a comprehensive platform to protect cloud applications and infrastructure. It offers enhanced visibility, automated remediation, and threat blocking.

Fortinet Inc. (NASDAQ:FTNT) is on a mission to train 1 million people in cybersecurity by 2026. Through its Training Institute programs, it has already trained over half a million individuals, addressing the growing demand for skilled cybersecurity professionals. The company’s efforts include partnerships with organizations like the European Commission and the All-India Council for Technical Education, as well as providing free training and certification programs.

With a dominant market share of over 65%, Fortinet is well-positioned for long-term growth. The company’s advanced technology, diverse product portfolio, and ability to adapt to evolving cybersecurity threats will drive future success.

Conestoga Capital Advisors Mid-Cap Strategy stated the following regarding Fortinet, Inc. (NASDAQ:FTNT) in its first quarter 2024 investor letter:

“Fortinet, Inc. (NASDAQ:FTNT): FTNT is the worldwide market share leader in network security firewalls (by units). During the quarter, FTNT reported a significant beat in billings, showing early gains from the strategic pivot to non-firewall solutions (SASE, SecOps) announced late last year. This follows two consecutive disappointing quarters, and the stock has nearly recovered to 2023 highs. While FTNT is still digesting a pull forward of product-led growth, the recovery appears to be on the right track and should drive higher than expected margins in 2024.”