Big Money Locking Up Fortinet Shares

Fortinet provides cybersecurity solutions focused on network security, infrastructure security, cloud security, endpoint protection, Internet of Things, and operational technology. After expected 2024 revenue of $5.9 billion (which would be a 10% year-over-year jump), the company thinks its addressable market could jump to $228 billion in 2028, meaning there’s ample room to grow.

From 2009 to 2019, FTNT grew its revenue at a compound annual growth rate of 24%. From 2019 to 2023, its revenue increased 25% annually to $5.3 billion. Second-quarter 2024 per-share earnings came in at $0.57, up from $0.38 the year prior as well as consensus estimates. These are all signs of a healthy company.

It’s no wonder FTNT shares are up 27% this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Has Fortinet in Sight

Institutional volumes reveal plenty. In the last year, FTNT has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in FTNT shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Fortinet.

Fortinet Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, FTNT has strong sales and earnings growth:

• 3-year sales growth rate (+27%)
• 3-year earnings growth rate (+35.6%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +9.4%.

Now it makes sense why the stock has been powering to new heights. FTNT has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Fortinet has been a top-rated stock at MAPsignals for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last decade, with more potentially on the horizon. The blue bars below show when FTNT was a top pick…sending shares upwards:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Fortinet Price Prediction

The FTNT rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in FTNT at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.