FTNT - Where Will Fortinet Stock Be in 3 Years?
2024-07-11 05:00:00 ET
Cybersecurity specialist Fortinet (NASDAQ: FTNT) hasn't been among the best performers on the stock market in the past three years with its 16% return lagging peers such as Palo Alto Networks and CrowdStrike Holdings by a wide margin. What's more, Fortinet stock has underperformed the S&P 500 's 28% return over the same period.
The situation hasn't improved this year, either, as the cybersecurity company's growth has underwhelmed investors. However, a closer look at Fortinet's recent results suggests better times lie ahead for the company, and it could deliver stronger growth over the next three years.
Fortinet's revenue in the first quarter of 2024 was up just 7% year over year to $1.35 billion. The company has been transitioning its business model from selling product licenses to subscriptions, and that's the main culprit for its slowing growth.
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Where Will Fortinet Stock Be in 3 Years?