Fortinet provides artificial intelligence-enabled tools to detect threats and prevent attacks and bad actors on networks and devices. But the cybersecurity leader is also engaged in efforts to prevent threats from AI itself.
The provider of firewalls and other cybersecurity tools noted that as AI evolves, its tools are "increasing access to the tactics and intelligence needed to execute successful attacks." Fortinet stock is Thursday's selection for IBD 50 Stocks To Watch.
Artificial Intelligence News And AI Stocks To Watch
Shares of Fortinet are in an early stage flat base with a buy point of 100.59, which is the stock's all-time high. Early stage bases tend to net higher gains, especially if the stock has already proved itself with solid gains.
Fortinet Stock: Fortinet Raises Full Year Sales Outlook
The stock rallied after third quarter results were announced Nov. 7 and extended gains after a rebound from the 50-day moving average. Both sales and earnings accelerated from the prior quarter. Sales grew 13% to $1.51 billion while earnings per share of 63 cents were 54% higher than the previous year. For the fourth quarter, the company expects sales of $1.59 billion and earnings of 60 cents a share at the midpoint.
Analysts polled by FactSet expect earnings of 61 cents per share on sales of $1.59 billion.
The company raised its full-year revenue guidance to $5.89 billion at the midpoint.
Fortinet has impressive ratings from Investor's Business Daily, scoring a 99 for its Composite Rating and EPS Rating. Its Relative Strength Rating of 93 shows the stock has outperformed the vast majority of stocks in the IBD database, even as it paused the past several weeks.
Mutual funds own 47% of shares outstanding. The Fidelity Contrafund (FCNTX) holds shares of Fortinet. The fund is part of the IBD Mutual Fund Index.
Fortinet went public on the Nasdaq on Nov. 18, 2009, at an initial offering price of 12.50. As of Wednesday's closing price, the stock had gained 60% year to date, more than twice the S&P 500, which had gained 24%.
Fortinet stock ranks first in the security software industry group, according to IBD Stock Checkup. It also has the best Composite and EPS Rating in its group.
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