We recently compiled a list of the 10 Stocks That Became Analyst Favorites This Week. In this article, we are going to take a look at where Fortinet Inc. (NASDAQ:FTNT) stands against the other analysts favorites.
US stocks registered a green day on Tuesday with the Dow surging up 538 points to end 1.24% higher. S&P 500 and Nasdaq also posted gains of 0.88% and 0.64% respectively, showcasing the strength of the American economy.
As for individual stocks, analysts continue to evaluate businesses based on any public information they can gather. Some of these insights turn into stock upgrades or downgrades while others reiterate the positive or negative outlook on the stocks. We came up with a similar list of stocks that have received analyst approval this week.
To come up with the list of 10 stocks moving on analyst optimism, we considered stocks with a market cap of at least $10 billion.
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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.
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This article was originally published at Insider Monkey.