FORTINET, INC.

FTNT
Delayed Nasdaq - 05/22 10:00:00 pm
142.64USD
-0.52%

Fortinet, Inc. : The underlying trend is to the upside

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David Meurisse
Contributor / Partner

Strategy published on : 05/21/2020 | 07:08

long trade on a pullback
On stand-by

Entry price : 115$
Target : 159$
Stop-loss : 99.4$
Cancellation Level : 157$
Potential : 38.26%

The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend.
Investors should buy the stock at current prices near $ 115 in order to target the $ 159.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.

● The group's high margin levels account for strong profits.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● The group usually releases upbeat results with huge surprise rates.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● The stock is in a well-established, long-term rising trend above the technical support level at 103.27 USD


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● The company's "enterprise value to sales" ratio is among the highest in the world.

● With an expected P/E ratio at 64.76 and 59.77 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.

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