#3 - Fortinet (NASDAQ:FTNT)
The next group of cybersecurity stocks showcases a specific sector niche. For example, Fortinet Inc. (NASDAQ: FTNT) is a leader in firewall hardware.
These firewalls aren’t like the ones of years past. Fortinet is the only company using application-specific integrated circuits (ASICs) to build its physical firewalls. It also offers software that runs on top of this hardware.
This is all part of Fortinet’s strategy of holistically examining a business. This means examining a company’s different divisions and/or systems as one enterprise. Its FortiASIC technology is one reason the company had over 50% of that market based on units shipped in 2024.
Like Palo Alto, the company has logged approximately 30% YoY revenue growth dating back to 2019. However, whereas Palo Alto’s number of shares outstanding increased by nearly 15%, Fortinet has lowered its share count by 5%. Combined with a forward P/E ratio that’s “only” in the 40x range, FTNT stock may offer better value for investors.
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.
More about Fortinet- Current Price
- $96.13
- Consensus Rating
- Hold
- Ratings Breakdown
- 13 Buy Ratings, 19 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $105.17 (9.4% Upside)
