NASDAQ:FTNT: a strong growth stock preparing for the next leg up?.

In this article we will dive into FORTINET INC (NASDAQ:FTNT) as a possible candidate for growth investing. Investors should always do their own research, but we noticed FORTINET INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Understanding NASDAQ:FTNT's 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:

• FTNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.15%, which is quite impressive.
• 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.20%.
• 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 16.69% 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 14.59% on average per year.

Analyzing Health Metrics

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:FTNT has earned a 6 out of 10:

• An Altman-Z score of 4.66 indicates that FTNT is not in any danger for bankruptcy at the moment.
• FTNT's Altman-Z score of 4.66 is fine compared to the rest of the industry. FTNT outperforms 68.12% of its industry peers.
• The Debt to FCF ratio of FTNT is 0.59, which is an excellent value as it means it would take FTNT, only 0.59 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 0.59, FTNT is doing good in the industry, outperforming 78.99% of the companies in the same industry.

Looking at the 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:

• The Return On Assets of FTNT (15.65%) is better than 94.20% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 26.27%, FTNT belongs to the top of the industry, outperforming 98.19% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for FTNT is significantly above the industry average of 10.19%.
• The last Return On Invested Capital (26.27%) for FTNT is above the 3 year average (21.99%), which is a sign of increasing profitability.
• The Profit Margin of FTNT (22.23%) is better than 91.67% of its industry peers.
• In the last couple of years the Profit Margin of FTNT has grown nicely.
• Looking at the Operating Margin, with a value of 23.80%, FTNT belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
• In the last couple of years the Operating Margin of FTNT has grown nicely.
• FTNT has a Gross Margin of 77.13%. This is in the better half of the industry: FTNT outperforms 74.28% of its industry peers.

Why is NASDAQ:FTNT a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:FTNT is 8:

FTNT has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 61.25. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 58.45, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Check the latest full fundamental report of FTNT for a complete fundamental analysis.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.