BUZ INVESTORS Fortinet Stock The world’s computers and networks are constantly under attack from hackers and foreign governments. The alarming rate of the cyberattacks have experts predicting the demand for cybersecurity solutions to significantly ramp up, driving up the prospects for cybersecurity stocks like Fortinet Inc (NASDAQ:FTNT).
Just think about all of the alleged hacking from Russia that took place during the elections and the constant barrage of cyberattacks on businesses and governments around the world.
Whether it is stealing intellectual capital from technology companies, classified information from governments, or customer data from major retailers, the threat is real and will only worsen as the world networks link up.
These are excellent metrics, but the growth rate is slated to decline to 16.10% and 14.70%, respectively for 2017 and 2018. (Source: “Fortinet, Inc. (FTNT),” Yahoo! Finance, last accessed March 30, 2017.)
I don’t view this as a major concern at this time, given the estimates could be on the conservative side, especially if the cybersecurity spending ramps significantly higher as many pundits expect.
As far as the earnings side, Fortinet has a five-year CAGR for earnings of 21.34%, well above the past five years’ CAGR of 7.18%. This implies Fortinet is expecting to grow its earnings at a much higher rate going forward versus the recent years.
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