Is NASDAQ:FTNT on the Verge of a Major Breakout as a Strong Growth Stock?

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.

Understanding NASDAQ:FTNT's Growth Score

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:FTNT, the assigned 8 reflects its growth potential:

• FTNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.15%, which is quite impressive.
• Measured over the past years, FTNT shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.13% on average per year.
• FTNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.20%.
• Measured over the past years, FTNT shows a very strong growth in Revenue. The Revenue has been growing by 24.11% on average per year.
• Based on estimates for the next years, FTNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.69% on average per year.
• FTNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.76% yearly.

Evaluating Health: NASDAQ:FTNT

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:FTNT has earned a 6 out of 10:

• FTNT has an Altman-Z score of 4.61. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
• FTNT has a Altman-Z score of 4.61. This is in the better half of the industry: FTNT outperforms 64.86% of its industry peers.
• 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 better Debt to FCF ratio (0.59) than 77.54% of its industry peers.

Assessing Profitability for 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:

• With an excellent Return On Assets value of 15.65%, FTNT belongs to the best of the industry, outperforming 93.84% of the companies in the same industry.
• FTNT has a Return On Invested Capital of 26.27%. This is amongst the best in the industry. FTNT outperforms 98.19% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for FTNT is significantly above the industry average of 10.02%.
• The last Return On Invested Capital (26.27%) for FTNT is above the 3 year average (21.99%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 22.23%, FTNT belongs to the best of the industry, outperforming 90.94% of the companies in the same industry.
• FTNT's Profit Margin has improved in the last couple of years.
• FTNT has a better Operating Margin (23.80%) than 92.39% of its industry peers.
• FTNT's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 77.13%, FTNT is in the better half of the industry, outperforming 73.55% of the companies in the same industry.

How does the Setup look for NASDAQ:FTNT

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:FTNT currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Although the technical rating is bad, FTNT does present a nice setup opportunity. 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 60.64. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 59.79, a Stop Loss order could be placed below this zone.

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

For an up to date full fundamental analysis you can check the fundamental report of FTNT

Check the latest full technical report of FTNT for a complete technical analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.