Strategy published on : 01/14/2020 | 08:48
long trade on a pullbackConditional Order Terminated
Entry price : 112$
Target : 122$
Stop-loss : 109.53$
Cancellation Level : 120$
Potential : 8.93%
Fortinet, Inc. shares have been in strong demand lately. The technical chart pattern looks positive which may give rise to new gains.
Investors should buy the stock at current prices near $ 112 in order to target the $ 122.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
● According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
● The company returns high margins, thereby supporting business profitability.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The group usually releases upbeat results with huge surprise rates.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● 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 last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The stock is in a well-established, long-term rising trend above the technical support level at 93.02 USD
● 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.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 67.86 times its estimated earnings per share for the ongoing year.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.