Exploring the Growth Potential of NASDAQ:FTNT as It Nears a Breakout.

In this article, we'll take a closer look at FORTINET INC (NASDAQ:FTNT) as a potential candidate for growth investing. While it's important for investors to conduct their own research, FORTINET INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:FTNT, the assigned 8 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 36.89% over the past year.
• FTNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.13% yearly.
• FTNT shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.09%.
• Measured over the past years, FTNT shows a very strong growth in Revenue. The Revenue has been growing by 24.11% on average per year.
• The Earnings Per Share is expected to grow by 13.59% on average over the next years. This is quite good.
• Based on estimates for the next years, FTNT will show a quite strong growth in Revenue. The Revenue will grow by 16.91% on average per year.

How We Gauge Health for NASDAQ:FTNT

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:FTNT has received a 6 out of 10:

• FTNT has an Altman-Z score of 5.07. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of FTNT (5.07) is better than 69.18% of its industry peers.
• FTNT has a debt to FCF ratio of 0.57. This is a very positive value and a sign of high solvency as it would only need 0.57 years to pay back of all of its debts.
• FTNT's Debt to FCF ratio of 0.57 is amongst the best of the industry. FTNT outperforms 81.72% of its industry peers.

Exploring NASDAQ:FTNT's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:FTNT, the assigned 8 is noteworthy for profitability:

• FTNT has a Return On Assets of 15.81%. This is amongst the best in the industry. FTNT outperforms 96.06% of its industry peers.
• FTNT has a better Return On Invested Capital (27.59%) than 98.57% of its industry peers.
• FTNT had an Average Return On Invested Capital over the past 3 years of 21.99%. This is significantly above the industry average of 10.01%.
• The last Return On Invested Capital (27.59%) for FTNT is above the 3 year average (21.99%), which is a sign of increasing profitability.
• FTNT's Profit Margin of 21.64% is amongst the best of the industry. FTNT outperforms 92.11% of its industry peers.
• FTNT's Profit Margin has improved in the last couple of years.
• FTNT's Operating Margin of 23.31% is amongst the best of the industry. FTNT outperforms 93.91% of its industry peers.
• In the last couple of years the Operating Margin of FTNT has grown nicely.
• FTNT's Gross Margin of 76.68% is fine compared to the rest of the industry. FTNT outperforms 73.12% of its industry peers.

How does the Setup look for NASDAQ:FTNT

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:FTNT this score is currently 8:

FTNT has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 67.41, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of FTNT

For an up to date full technical analysis you can check the technical report of FTNT

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.