10 Stocks That Became Analyst Favorites This Week

6. Fortinet Inc. (NASDAQ:FTNT)

Fortinet Inc. is a cybersecurity company that provides secure networking solutions to businesses. Scotiabank upgraded its target price from $110 to $115. The company has shown strong progress over the past years, increasing its revenue by 70.87% since FY2021. On the back of this strength, the company also grew its gross profit by 77.86% in the past 3 years.

In Q3 2024, the product revenue of the company increased by 1.7% YoY while its service revenue went up by 19.1% YoY. In the previous 4 quarters, it generated $2.81 billion of gross profit, corresponding to a net income of $126.7 million. It is projected to earn an annual EPS of $2.25, $2.42, and $2.79 in 2024, 2025, and 2026 respectively. Revenue estimates indicate an expected revenue growth of $5.88 billion in 2024 and $6.63 billion in 2025.

The stock price surged over 55% in the past year, so it might seem overvalued. However, growth-oriented investors won’t mind taking a risk at this point in order to catch some of the future growth that may not yet be priced in.