Exploring the Growth Potential of NASDAQ:FTNT as It Nears a Breakout.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether FORTINET INC (NASDAQ:FTNT) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but FORTINET INC has surfaced on our radar for growth with base formation, warranting further examination.

ChartMill's Evaluation of Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:FTNT has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 28.15% over the past year.
• FTNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.13% yearly.
• The Revenue has grown by 14.20% in the past year. This is quite good.
• The Revenue has been growing by 24.11% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 16.69% on average over the next years. This is quite good.
• The Revenue is expected to grow by 14.59% on average over the next years. This is quite good.

How We Gauge Health for NASDAQ:FTNT

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:FTNT, the assigned 6 reflects its health status:

• An Altman-Z score of 4.60 indicates that FTNT is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.60, FTNT is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
• FTNT has a debt to FCF ratio of 0.59. This is a very positive value and a sign of high solvency as it would only need 0.59 years to pay back of all of its debts.
• FTNT has a Debt to FCF ratio of 0.59. This is in the better half of the industry: FTNT outperforms 78.62% of its industry peers.

Evaluating Profitability: NASDAQ:FTNT

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:FTNT, the assigned 8 is a significant indicator of profitability:

• FTNT's Return On Assets of 15.65% is amongst the best of the industry. FTNT outperforms 93.84% 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.
• FTNT had an Average Return On Invested Capital over the past 3 years of 21.99%. This is significantly above the industry average of 10.16%.
• The 3 year average ROIC (21.99%) for FTNT is below the current ROIC(26.27%), indicating increased profibility in the last year.
• FTNT's Profit Margin of 22.23% is amongst the best of the industry. FTNT outperforms 90.94% of its industry peers.
• FTNT's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 23.80%, FTNT belongs to the best of the industry, outperforming 92.39% of the companies in the same industry.
• FTNT's Operating Margin has improved in the last couple of years.
• FTNT's Gross Margin of 77.13% is fine compared to the rest of the industry. FTNT outperforms 73.91% of its industry peers.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:FTNT scores a 9 out of 10:

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 61.44. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 59.57, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for FTNT in the last couple of days, which is a good sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of FTNT contains the most current fundamental analsysis.

Our latest full technical report of FTNT contains the most current technical analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.