Fortinet Stock Buy Hold or Sell Recommendation

FTNT Stock  USD 96.25  2.83  3.03%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Fortinet is 'Strong Hold'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Fortinet given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Fortinet, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Fortinet Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Fortinet Stock please use our How to Invest in Fortinet guide.
Note, we conduct extensive research on individual companies such as Fortinet and provide practical buy, sell, or hold advice based on investors' constraints. Fortinet. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute Fortinet Buy or Sell Advice

The Fortinet recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Fortinet. Macroaxis does not own or have any residual interests in Fortinet or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Fortinet's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell FortinetBuy Fortinet
Strong Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Very SmallDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Fortinet has a Risk Adjusted Performance of (0.01), Jensen Alpha of 0.0729, Total Risk Alpha of 0.1947 and Treynor Ratio of (0.04)
Macroaxis provides advice on Fortinet to complement and cross-verify current analyst consensus on Fortinet. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Fortinet is not overpriced, please confirm all Fortinet fundamentals, including its debt to equity, and the relationship between the gross profit and price to earnings to growth . Given that Fortinet has a price to earning of 58.79 X, we urge you to verify Fortinet market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Fortinet Trading Alerts and Improvement Suggestions

Fortinet generated a negative expected return over the last 90 days
Fortinet is unlikely to experience financial distress in the next 2 years
About 71.0% of the company shares are owned by institutional investors
Latest headline from finance.yahoo.com: Fortinet, Inc. Expands OT Security Platform Amid Rising Cyber Threats

Fortinet Returns Distribution Density

The distribution of Fortinet's historical returns is an attempt to chart the uncertainty of Fortinet's future price movements. The chart of the probability distribution of Fortinet daily returns describes the distribution of returns around its average expected value. We use Fortinet price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Fortinet returns is essential to provide solid investment advice for Fortinet.
Mean Return
-0.03
Value At Risk
-4.36
Potential Upside
2.87
Standard Deviation
1.86
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Fortinet historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Fortinet Stock Institutional Investors

The Fortinet's institutional investors refer to entities that pool money to purchase Fortinet's securities or originate loans. These institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds.
Shares
Nordea Investment Mgmt Bank Demark A/s2024-12-31
7.5 M
T. Rowe Price Investment Management,inc.2024-12-31
6.8 M
Amundi2024-12-31
6.6 M
Fmr Inc2024-12-31
6.5 M
Northern Trust Corp2024-12-31
6.5 M
Ubs Asset Mgmt Americas Inc2024-12-31
M
Barclays Plc2024-12-31
5.9 M
Legal & General Group Plc2024-12-31
5.8 M
First Trust Advisors L.p.2024-12-31
5.1 M
Vanguard Group Inc2024-12-31
68.1 M
Blackrock Inc2024-12-31
56.6 M
Note, although Fortinet's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Fortinet Cash Flow Accounts

202020212022202320242025 (projected)
Change To Inventory(42.2M)(19.4M)(109.1M)(253.5M)131.2M137.8M
Change In Cash(160.7M)257.3M363.8M(285M)1.5B1.6B
Free Cash Flow957.8M1.2B1.4B1.7B1.9B2.0B
Depreciation68.8M84.4M104.3M113.4M416.5M437.3M
Other Non Cash Items143.4M183.8M545.8M598.5M117M123.3M
Capital Expenditures125.9M295.9M281.2M204.1M378.9M397.8M
Net Income488.5M606.7M856.6M1.1B1.7B1.8B
End Period Cash Flow1.1B1.3B1.7B1.4B2.9B3.0B
Change To Netincome197.6M187.2M230.2M82.6M95.0M87.3M
Investments92M(1.3B)763.9M(360.3M)(727.4M)(691.0M)
Change Receivables(96.7M)(176.4M)(72.5M)(456.7M)(411.0M)(390.5M)

Fortinet Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Fortinet or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Fortinet's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Fortinet stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.07
β
Beta against Dow Jones1.02
σ
Overall volatility
1.91
Ir
Information ratio 0.04

Fortinet Volatility Alert

Fortinet exhibits very low volatility with skewness of -0.66 and kurtosis of 0.87. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fortinet's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Fortinet's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Fortinet Implied Volatility

Fortinet's implied volatility exposes the market's sentiment of Fortinet stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Fortinet's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Fortinet stock will not fluctuate a lot when Fortinet's options are near their expiration.

Fortinet Fundamentals Vs Peers

Comparing Fortinet's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Fortinet's direct or indirect competition across all of the common fundamentals between Fortinet and the related equities. This way, we can detect undervalued stocks with similar characteristics as Fortinet or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Fortinet's fundamental indicators could also be used in its relative valuation, which is a method of valuing Fortinet by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Fortinet to competition
FundamentalsFortinetPeer Average
Return On Equity0.34-0.31
Return On Asset0.13-0.14
Profit Margin0.29 %(1.27) %
Operating Margin0.35 %(5.51) %
Current Valuation70.94 B16.62 B
Shares Outstanding768.97 M571.82 M
Shares Owned By Insiders17.49 %10.09 %
Shares Owned By Institutions71.47 %39.21 %
Number Of Shares Shorted13.59 M4.71 M
Price To Earning58.79 X28.72 X
Price To Book49.55 X9.51 X
Price To Sales12.43 X11.42 X
Revenue5.96 B9.43 B
Gross Profit4.8 B27.38 B
EBITDA1.8 B3.9 B
Net Income1.75 B570.98 M
Cash And Equivalents1.73 B2.7 B
Cash Per Share2.21 X5.01 X
Total Debt994.3 M5.32 B
Debt To Equity4.24 %48.70 %
Current Ratio1.07 X2.16 X
Book Value Per Share1.95 X1.93 K
Cash Flow From Operations2.26 B971.22 M
Short Ratio3.56 X4.00 X
Earnings Per Share2.26 X3.12 X
Price To Earnings To Growth2.77 X4.89 X
Target Price114.5
Number Of Employees14.14 K18.84 K
Beta0.97-0.15
Market Capitalization74.01 B19.03 B
Total Asset9.76 B29.47 B
Retained Earnings(117.1 M)9.33 B
Working Capital1.91 B1.48 B
Note: Acquisition by Michael Xie of 473050 shares of Fortinet at 9.812 subject to Rule 16b-3 [view details]

Fortinet Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Fortinet . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Fortinet Buy or Sell Advice

When is the right time to buy or sell Fortinet? Buying financial instruments such as Fortinet Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Fortinet in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Music and Video Thematic Idea Now

Music and Video
Music and Video Theme
Companies specializing in music, video and movie production and distribution. The Music and Video theme has 31 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Music and Video Theme or any other thematic opportunities.
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Additional Tools for Fortinet Stock Analysis

When running Fortinet's price analysis, check to measure Fortinet's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fortinet is operating at the current time. Most of Fortinet's value examination focuses on studying past and present price action to predict the probability of Fortinet's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fortinet's price. Additionally, you may evaluate how the addition of Fortinet to your portfolios can decrease your overall portfolio volatility.