We came across a bullish thesis on Fortinet, Inc. (FTNT) on Long-Term Pick’s Substack by Dan. In this article, we will summarize the bulls’ thesis on FTNT. Fortinet, Inc. (FTNT)’s share was trading at $99.33 as of Jan 29th. FTNT’s trailing and forward P/E were 49.91 and 40.23 respectively according to Yahoo Finance.
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Fortinet (FTNT) continues to demonstrate a dynamic and evolving presence in the cybersecurity landscape, with key developments enhancing its strategic positioning and growth prospects. As of its upcoming earnings report on February 6, 2025, the company remains confident in its financial health, as evidenced by its recent board-approved $1 billion increase to its share repurchase program, raising the total to $2.03 billion. This move underscores Fortinet’s strong balance sheet and commitment to returning value to shareholders. The company’s consistent evolution is highlighted by the acquisition of Perception Point, a leader in advanced threat prevention for email, browsers, and SaaS applications. This acquisition strengthens Fortinet’s AI-powered cybersecurity capabilities and further expands its portfolio, addressing the growing demand for workforce security in an increasingly digital world. In line with its focus on securing modern infrastructures, Fortinet also launched the FortiGate Rugged 70G, a next-generation firewall tailored for industrial environments, combining enterprise-grade security with high-performance 5G networking to address cybersecurity challenges in operational technology systems.
Fortinet has reaffirmed its focus on three key growth areas: Secure Networking, Unified SASE (Secure Access Service Edge), and Security Operations. These areas are crucial in addressing the evolving cybersecurity needs of organizations, particularly as hybrid workforces and cloud-native environments become the norm. Fortinet has also deepened its partnership with Google Cloud, integrating its security technologies with Google’s infrastructure to provide Zero Trust architectures, further solidifying its position in the market. Additionally, the company launched FortiAppSec Cloud, a cloud-delivered platform designed to enhance web application and API security across multi-cloud environments. This platform leverages AI-driven threat detection and automated responses to protect against vulnerabilities like SQL injection and cross-site scripting, simplifying security management while improving performance and scalability for modern applications.
Fortinet’s cybersecurity platform, the Fortinet Security Fabric, continues to evolve with the latest version of its FortiOS operating system. Enhancements to FortiOS include generative AI, data protection, and unified agent features, empowering customers to better mitigate risk, reduce complexity, and improve user experience across their entire network. With these strategic moves and technological advancements, Fortinet is well-positioned for continued growth and market leadership in cybersecurity. The company’s diversified portfolio and commitment to innovation make it an attractive player in the rapidly expanding cybersecurity space, with significant upside potential for investors.
Fortinet, Inc. (FTNT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held FTNT at the end of the third quarter which was 42 in the previous quarter. While we acknowledge the risk and potential of FTNT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FTNT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.