Fortinet, Inc. (FTNT) Hits Fresh High: Is There Still Room to Run?

Shares of Fortinet (FTNT) have been strong performers lately, with the stock up 48.7% over the past month. The stock hit a new 52-week high of $114.66 in the previous session. Fortinet has gained 43.7% since the start of the year compared to the 16.7% gain for the Zacks Computer and Technology sector and the 10.9% return for the Zacks Security industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 6, 2026, Fortinet reported EPS of $0.82 versus consensus estimate of $0.61.For the current fiscal year, Fortinet is expected to post earnings of $3 per share on $7.75 in revenues. This represents a 8.7% change in EPS on a 14.03% change in revenues. For the next fiscal year, the company is expected to earn $3.31 per share on $8.47 in revenues. This represents a year-over-year change of 10.05% and 9.24%, respectively.Valuation MetricsWhile Fortinet has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Fortinet has a Value Score of D. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 38X current fiscal year EPS estimates, which is not in-line with the peer industry average of 38X. On a trailing cash flow basis, the stock currently trades at 36.8X versus its peer group's average of 36.8X. Additionally, the stock has a PEG ratio of 2.89. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Fortinet currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Fortinet passes the test. Thus, it seems as though Fortinet shares could have potential in the weeks and months to come.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks