Down 20% From Highs, Should You Buy the Dip in Fortinet Stock?

In recent years, the demand for cybersecurity solutions has skyrocketed, propelled by factors such as escalating cyber threats, rapid digital transformation, and stringent regulatory mandates. The global cybersecurity market's revenue is expected to reach a staggering $183.1 billion in 2024 and register a compounded annual growth rate (CAGR) of 10.6% to reach $273.6 billion by 2028.

This bullish industry forecast could benefit cybersecurity player Fortinet, Inc. (FTNT), which is being lauded for its cloud-based security solution, FortiSASE. Fortinet shares have returned 11.5% on a YTD basis, clearly outpacing the S&P 500 Index’s ($SPX) gain of 6.2% during the same period. Despite these gains, FTNT stock trades nearly 20% below its 52-week highs.