Momentum Stock Watch: Fortinet Inc. (FTNT)

Company Profile:

Fortinet, Inc. provides cyber security solutions for enterprises, service providers, and government organizations worldwide. The Company’s network security solution consists of FortiGate physical and virtual appliance products that provide an array of integrated security and networking functions to protect data, applications and users from network-and content-level security threats. The Company’s’ FortiGate appliances may be deployed as Next Generation Firewalls (NGFW), Data Center Firewalls (DCFW), Unified Threat Management (UTM) systems, Internal Network Firewall (INFW), Virtual Machine Firewalls or Cloud Firewalls. The FortiGate appliances range from the FortiGate-20 series for small businesses and branch offices to the FortiGate-5000 series for enterprises and service providers, and are based on its technology platform. Its security services are based on intelligence gathered by its FortiGuard Labs team. The company was founded in 2000 and is headquartered in Sunnyvale, California.

Recent News:

Fortinet, Inc. is expected to report earnings of $0.04 per share for the current quarter. Most recently the firm posted earnings of $0.03 for the fiscal quarter ending on 2015-06-30.It will hold a conference call to discuss its third quarter 2015 financial results on Thursday, October 22, 2015 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).

On October 12, 2015, Fortinet Inc announced their FortiGate VMX next-generation and internal segmentation firewall (NGFW/ISFW).The FortiGate VMX with the VMware NSX® network virtualization platform enables organizations to automate advanced cybersecurity in the Software-Defined Data Center (SDDC).

On October 01, 2015, Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, announced a global alliance partner relationship with Fortinet® (FTNT). Through this relationship Capgemini will further reinforce its cybersecurity services portfolio leveraging Fortinet products to help reduce customer cybersecurity costs and increase the resilience of clients’ infrastructure and applications.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

FTNT’s strengths can be seen in its strong efficiency and better Solvency. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 50.41. The P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry. We rate Fortinet Inc. (FTNT) a STRONG BUY.