FTNT - Fortinet: Don't Overthink When Presented With A Solid Buying Opportunity
2024-06-01 11:30:00 ET
Summary
- Fortinet stock has disappointed again, falling into a bear market recently.
- Fortinet's weak billings growth justified the market pessimism.
- However, Fortinet's growth normalization phase could soon end.
- FTNT stock isn't cheap, but its highly profitable business model is hard to surpass.
- I argue why FTNT stock has demonstrated increasingly robust price action, suggesting a further recovery could be near. Read on.
Fortinet Stock Fell Into A Bear Market
Fortinet, Inc. ( FTNT ) investors have witnessed another steep pullback in FTNT stock after its buying momentum stalled in April 2024. As a result, we revisited lows last seen in January 2024, as FTNT underperformed the S&P 500 ( SPX ) ( SPY ) YTD. Recent selloffs in cybersecurity stocks have likely worsened buying sentiments on the leading SASE leader as Fortinet navigates growth normalization headwinds in its product sales market. Fortinet's Q1 earnings release in early May didn't inspire confidence as Fortinet's billings growth performance disappointed. Notwithstanding the bear market decline from FTNT's April 2024 highs, I assess the possibility for Fortinet's performance to improve moving ahead, as the slowdown in its firewall sales potentially bottoms in the first half....
Fortinet: Don't Overthink When Presented With A Solid Buying Opportunity