NASDAQ:FTNT, a strong growth stock, setting up for a breakout.

In this article we will dive into FORTINET INC (NASDAQ:FTNT) as a possible candidate for growth investing. Investors should always do their own research, but we noticed FORTINET INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

A Closer Look at Growth for NASDAQ:FTNT

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:FTNT scores a 8 out of 10:

• 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.
• 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 14.76% on average over the next years. This is quite good.

Analyzing Health Metrics

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:FTNT has received a 6 out of 10:

• FTNT has an Altman-Z score of 4.53. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of FTNT (4.53) is better than 63.60% 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.
• The Debt to FCF ratio of FTNT (0.59) is better than 78.45% of its industry peers.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:FTNT has earned a 8 out of 10:

• Looking at the Return On Assets, with a value of 15.65%, FTNT belongs to the top of the industry, outperforming 93.99% 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 98.23% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for FTNT is significantly above the industry average of 9.90%.
• 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.
• FTNT has a better Profit Margin (22.23%) than 90.81% 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 92.58% of the companies in the same industry.
• In the last couple of years the Operating Margin of FTNT has grown nicely.
• FTNT's Gross Margin of 77.13% is fine compared to the rest of the industry. FTNT outperforms 73.85% of its industry peers.

Why is NASDAQ:FTNT a 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 8 out of 10:

FTNT has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 57.93, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.