FORTINET INC (NASDAQ:FTNT) – A Strong Growth Stock with Technical Breakout Potential

FORTINET INC (NASDAQ:FTNT) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a promising chart pattern, making it worth a closer look for investors seeking growth opportunities.

Fundamental Strengths

• Strong Growth: FTNT has demonstrated impressive growth, with earnings per share (EPS) increasing by 45.66% over the past year and revenue growing at 13.83%. The company’s long-term revenue growth averages 22.46% annually.
• High Profitability: The company scores a 9/10 in profitability, with a 30.60% profit margin and 31.67% operating margin—both well above industry averages.
• Solid Financial Health: FTNT maintains a strong balance sheet, earning an 8/10 health rating. Its low debt levels and high solvency metrics reduce financial risk.
• Reasonable Valuation: While the P/E ratio is elevated at 41.64, FTNT trades at a discount compared to some industry peers, and its strong growth may justify the premium.

Technical Setup

• Positive Trend: The stock is in a long-term uptrend, trading near its 52-week high. Short-term consolidation suggests potential for a breakout.
• Support Levels: Key support zones exist between $100.20 - $103.16, providing a cushion against downside risk.
• Low Resistance: Minimal overhead resistance means upward movement could accelerate if the stock breaks past recent highs.
• Strong Relative Performance: FTNT outperforms 92% of the broader market and 82% of software industry peers over the past year.

For a deeper dive, review the full fundamental analysis and technical report.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investing advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.