Fortinet Stock Buy Hold or Sell Recommendation

FTNT
 Stock
  

USD 49.97  1.47  3.03%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Fortinet is 'Cautious Hold'. Macroaxis provides Fortinet buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Fortinet positions. The advice algorithm takes into account all of Fortinet's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Fortinet's buy-and-hold perspective. Please check 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. We conduct extensive research on individual companies such as Fortinet and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Fortinet.

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
Cautious Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Fortinet has a Mean Deviation of 2.06, Standard Deviation of 3.14 and Variance of 9.86
Our investment recommendation tool can be used to complement Fortinet trade advice provided by experts. It analyzes the company's potential to grow against your specific risk preferences and investment 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 number of shares shorted of 11.51 M, 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 has high historical volatility and very poor performance
About 71.0% of the company shares are owned by institutional investors
Latest headline from simplywall.st: Should You Think About Buying Fortinet, Inc. Now - Simply Wall St

Fortinet current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Fortinet analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Fortinet analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price71.80
Target Median Price70.80
Target High Price85.00
Recommendation Mean2.00
Number Of Analyst Opinions26
Target Low Price58.20
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

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 stock 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-0.25Value At Risk-4.27
Potential Upside3.72Standard Deviation3.14
   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

Have you ever been surprised when a price of an equity instrument such as Fortinet is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Fortinet backward and forwards among themselves. Fortinet's institutional investor refers to the entity that pools money to purchase Fortinet's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Vanguard Group IncCommon Shares67.4 M3.8 B
Price T Rowe Associates IncCommon Shares53 MB
Blackrock IncCommon Shares52.9 MB
State Street CorpCommon Shares25.9 M1.5 B
Bank Of New York Mellon CorpCommon Shares21.2 M1.2 B
Alliancebernstein LpCommon Shares19.7 M1.1 B
Geode Capital Management LlcCommon Shares15.1 M852.9 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 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 Technology 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
-0.07
β
Beta against DOW1.56
σ
Overall volatility
3.20
Ir
Information ratio -0.04

Fortinet Volatility Alert

Fortinet exhibits very low volatility with skewness of -2.26 and kurtosis of 9.96. However, we advise investors to further study Fortinet technical indicators to ensure that all market info is available and is reliable. 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 stocks as prices fall.

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 Equity105.07 %(0.31) %
Return On Asset7.72 %(0.14) %
Profit Margin17.79 %(1.27) %
Operating Margin21.41 %(5.51) %
Current Valuation46.74 B16.62 B
Shares Outstanding163.5 M571.82 M
Shares Owned by Insiders18.36 %10.09 %
Shares Owned by Institutions70.90 %39.21 %
Number of Shares Shorted11.51 M4.71 M
Price to Earning16.49 X28.72 X
Price to Book8.12 X9.51 X
Price to Sales2.22 X11.42 X
Revenue3.59 B9.43 B
Gross Profit2.56 B27.38 B
EBITDA767.8 M3.9 B
Net Income638 M570.98 M
Cash and Equivalents2.14 B2.7 B
Cash per Share2.67 X5.01 X
Total Debt988.9 M5.32 B
Debt to Equity4.24 %48.70 %
Current Ratio1.28 X2.16 X
Book Value Per Share6.01 X1.93 K
Cash Flow from Operations1.58 B971.22 M
Short Ratio2.36 X4.00 X
Earnings Per Share2.96 X3.12 X
Price to Earnings To Growth2.79 X4.89 X
Number of Employees10.86 K18.84 K
Beta1.18-0.15
Market Capitalization7.97 B19.03 B
Total Asset1.79 B29.47 B
Retained Earnings151.38 M9.33 B
Working Capital591.87 M1.48 B
Current Asset1.27 B9.34 B
   Acquisition by Stavridis James G of 4131 shares of Fortinet 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 Commodities Thematic Idea Now

Commodities
Commodities Theme
Funds or Etfs investing in commodities such as oil, gold, corn, soy, and agricultural goods. The Commodities theme has 40 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 Commodities Theme or any other thematic opportunities.
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Please check 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. You can also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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Is Fortinet's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Fortinet. If investors know Fortinet will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Fortinet listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Fortinet is measured differently than its book value, which is the value of Fortinet that is recorded on the company's balance sheet. Investors also form their own opinion of Fortinet's value that differs from its market value or its book value, called intrinsic value, which is Fortinet's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fortinet's market value can be influenced by many factors that don't directly affect Fortinet's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fortinet's value and its price as these two are different measures arrived at by different means. Investors typically determine Fortinet value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fortinet's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.