Valued at $127 billion, Fortinet Inc. (FTNT) is a provider of network security appliances and network security solutions to enterprises, service providers, and government entities. The Trend Seeker issued a new “Buy” signal on Aug. 27. The stock has gained 0.3% since that signal, notes Jim Van Meerten, analyst at Barchart.
I found Fortinet by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. Fortinet hit an all-time high of $181.37 on Sept. 24 and has a Weighted Alpha of 103.7. Its 60-month beta is 1.06 and its Relative Strength Index (RSI) was recently at 57.5. There’s a technical support level around $171.60.
Fortinet Inc. (FTNT)
Revenue is projected to grow by 19.4% this year and another 11.3% next year. Earnings are estimated to increase by 25% this year and an additional 9.5% next year.
The Wall Street analysts followed by Barchart give the stock eight “Strong Buy,” 29 “Hold,” and four “Strong Sell” opinions with price targets from $104 to $220. Quite a disagreement! Value Line rates the stock “Highest,” while Morningstar thinks the stock is fairly valued.
Although there are four “Strong Sell” analyst opinions, I see no reason to sell at this point. Short interest is only 1.8% of the float and Value Line still rates this stock solidly. Momentum investors should put in a rational stop loss and ride the tide as long as the trend continues.
