The Early Bird - Stock of the Day

Fortinet (FTNT)

$104.21

+$0.45 (+0.4%)

Market Cap: $80.13B

About Fortinet

Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide. It offers secure networking solutions focus on the convergence of networking and security; network firewall solutions that consist of FortiGate data centers, hyperscale, and distributed firewalls, as well as encrypted applications; wireless LAN solutions; and secure connectivity solutions, including FortiSwitch secure ethernet switches, FortiAP wireless local area network access points, FortiExtender 5G connectivity gateways, and other products.

The company also provides the Fortinet Unified SASE solutions that include firewall, SD-WAN, Secure web gateway, cloud access services broker, data loss prevention, zero trust network access, and cloud security, including web application firewalls, virtualized firewalls, and cloud-native firewalls. In addition, it offers security operations solutions comprising FortiAI generative AI assistant, FortiSIEM security information and event management, FortiSOAR security orchestration, automation and response, FortiEDR endpoint detection and response, FortiXDR extended detection and response, FortiMDR managed detection and response service, FortiNDR network detection and response, FortiRecon digital risk protection, FortiDeceptor deception technology, FortiGuard SoCaaS, FortiSandbox sandboxing, FortiGuard incident response, and other products. Further, the company offers FortiGuard security services consisting of FortiGuard application security, content security, device security, NOC/SOC security, and web security services; FortiCare technical support services; and training services to customers and channel partners, as well as operates a FortiGuard Lab, a cybersecurity threat intelligence and research organization. It serves enterprise, communication and security service providers, government organizations, and small and medium-sized businesses. The company was incorporated in 2000 and is headquartered in Sunnyvale, California.

Fortinet Bull Case

Here are some ways that investors could benefit from investing in Fortinet, Inc.:

The current stock price is around $94.83, which reflects a recent increase, indicating positive market sentiment towards Fortinet, Inc.
Fortinet, Inc. reported a strong quarterly earnings result, exceeding analysts' expectations, which demonstrates robust financial performance and growth potential.
The company has a high return on equity, showcasing effective management and profitability, which can attract investors looking for strong financial metrics.
Recent upgrades from multiple analysts, including increased target prices, suggest a bullish outlook on the stock, indicating potential for future price appreciation.
Fortinet, Inc. has a solid market capitalization of approximately $72.92 billion, which positions it as a significant player in the cybersecurity sector, attracting institutional investors.

Fortinet Bear Case

Investors should be bearish about investing in Fortinet, Inc. for these reasons:

The stock has a relatively high price-to-earnings ratio, which may indicate that it is overvalued compared to its earnings, potentially leading to a price correction.
Despite recent positive performance, the stock has experienced significant insider selling, which could signal a lack of confidence from those closest to the company.
Fortinet, Inc. operates in a highly competitive cybersecurity market, which poses risks as new entrants and existing competitors may impact market share and profitability.
The company's debt-to-equity ratio is moderate, which could raise concerns about financial leverage and the ability to manage debt in a downturn.
Market volatility and economic uncertainties could adversely affect Fortinet, Inc.'s stock performance, making it a riskier investment in the current climate.

These 3 Cybersecurity Stocks Are Defying the Downturn

Written By Ryan Hasson on 4/29/2025

Cybersecurity

The technology sector, which had been primarily responsible for powering the market’s recent ascent until this year, was at the forefront of the recent downturn, weighed down by global economic uncertainty and a renewed wave of risk-off sentiment. However, within the broader tech landscape, one industry has stood out for its relative strength and resilience: cybersecurity stocks.

As cyber threats grow more frequent and sophisticated, cybersecurity has become a global priority for businesses and governments. High-profile data breaches, ransomware attacks, and escalating geopolitical tensions have only underscored the critical need for strong digital defense systems.

As a result, spending on cybersecurity remains robust, even as other areas of tech face pressure. The industry also benefits from its tariff-resilient nature, as many of its services are software-based and not directly impacted by global trade restrictions.

While the broader market and even several of the Magnificent Seven stocks remain below their 200-day simple moving averages (SMA), many top cybersecurity stocks have not held above key technical levels and moving averages and have outperformed the tech sector, with some even trading at new 52-week highs.

This kind of strength is typically seen as a bullish signal, reflecting institutional accumulation and positive capital flows.

Here are three cybersecurity leaders who have stood out with strong year-to-date performance and clear signs of investor confidence:

CrowdStrike: A Leader in Cloud-Native Cybersecurity

CrowdStrike (NASDAQ: CRWD), a leading cybersecurity company based in Austin, Texas, provides advanced cloud-native endpoint protection, threat intelligence, and real-time attack response capabilities. The stock has significantly outperformed the broader market, rising 24% year-to-date and over 42% over the past 12 months.

Although shares briefly dipped below their 200-day simple moving average (SMA) in April, the decline was quickly reversed. CRWD has since reclaimed all key SMAs and now trades just 7% below its 52-week high. This resilience reflects a strong institutional interest.

Over the last 12 months, CRWD has recorded $9.5 billion in inflows, compared to $6.8 billion in outflows, indicating that large investors remain bullish on the stock’s long-term prospects. Most recently, in the first quarter of 2025, CRWD recorded $578 million in inflows compared to $290 million in outflows.

Fortinet: A Leader in Integrated Cybersecurity Solutions

Fortinet (NASDAQ: FTNT) provides security solutions that help businesses, governments, and service providers safeguard their networks, data, and applications. Its integrated platform and broad customer base give it a solid competitive edge.

Year-to-date, FTNT is up nearly 9% and is trading above all major moving averages. Like CrowdStrike, Fortinet also briefly tested its 200-day SMA in early April but quickly bounced, demonstrating strong demand at support levels. The stock is now just 10% off its all-time highs.

With earnings scheduled for May 7, analysts have a Hold consensus rating based on 34 analysts, with a modest upside forecast. However, institutional activity suggests long-term confidence, as $9.5 billion has flowed into the stock over the past year, compared to just $3.95 billion in outflows.

Zscaler: A Cloud Security Leader Powering Digital Transformation

Zscaler (NASDAQ: ZS) is a cloud security leader focused on securing digital transformation for enterprises through its Zero Trust Exchange platform. The company’s momentum has been especially impressive in recent months.

ZS recently hit a new 52-week high after breaking through significant resistance at the $217 level, signaling strong technical momentum. While longer-term institutional flows have been net negative, $3.5 billion in outflows versus $1.8 billion in inflows over the last year, the tide is turning.

In Q1 2025 alone, Zscaler reported $145 million in inflows, compared to just $8.8 million in outflows.

Analysts are optimistic, with a Moderate Buy rating and a consensus price target suggesting more than 22% upside from current levels.

The Bottom Line: Opportunities in Cybersecurity Stocks

Despite the broader tech correction, the cybersecurity sector has emerged as a bright spot, showcasing relative strength, institutional demand, and technical resilience.

For investors seeking growth opportunities in uncertain times, these cybersecurity leaders may provide compelling exposure to one of modern technology's most durable and essential trends.