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

FORTINET INC (NASDAQ:FTNT) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamental growth metrics with a bullish technical structure, making it a candidate worth examining further.

Fundamental Strengths

FTNT’s fundamental profile stands out in several key areas:

• Growth: Revenue has grown at an average of 22.46% annually over the past years, with earnings per share (EPS) increasing by 36.84% yearly. Future revenue is expected to grow at 13.49% per year.
• Profitability: The company boasts strong margins, including an 81.65% gross margin and 30.60% profit margin, outperforming most peers in the software industry.
• Financial Health: With a Debt-to-Equity ratio of 0.25 and a high Altman-Z score of 7.06, FTNT maintains a stable balance sheet.

Technical Setup

The stock is currently in a bullish trend, supported by:

• Positive Trends: Both short-term and long-term trends are upward, with the stock trading near the upper end of its 52-week range.
• Consolidation Breakout Potential: Prices have been consolidating between $98.60 and $105.79, presenting a potential breakout opportunity if resistance at $104.51-$104.94 is cleared.
• Strong Relative Strength: FTNT has outperformed 91% of all stocks over the past year and 81% of its software industry peers.

Why This Combination Matters

Growth stocks with strong technical setups often present favorable risk-reward scenarios. FTNT’s combination of accelerating earnings, healthy financials, and a constructive chart pattern suggests it could continue its upward momentum if market conditions remain supportive.

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

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

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.