While the COVID-19 pandemic has been a boon for companies that offer solutions to facilitate remote activities, the confidentiality and security aspect of online data–its vulnerability to cybercrimes–has become a new imperative. Cyber-attacks have become rampant over the past few months. As per the FBI, in May 2020, there was an 800% surge in reported ransomware attacks and other cybercrimes…
These attacks have led to the disclosure of sensitive information for individuals, companies and the U.S. government in the recent past. Because the global economy has grown highly reliant on cyberspace, companies have become more vulnerable to bad actors and malevolent attacks. Consequently, the demand for cybersecurity is on the rise. According to the latest estimates by Canalsys, cybersecurity spending is expected to climb 10% to $60.2 billion in 2021. This suggests good times ahead for core cybersecurity solution providers.
Fortinet, Inc. (FTNT – Get Rating), NortonLifeLock Inc. (NLOK – Get Rating), and Proofpoint, Inc. (PFPT – Get Rating) are involved primarily in developing cyber safety products and services. These stocks have demonstrated strong performance over the past year, and we think are likely to continue their momentum this year and beyond.
FTNT is the provider of broad, integrated and automated cybersecurity solutions globally. FortiGate hardware and software licenses, FortiSwitch switching solution, FortiAP secure wireless networking solutions, and FortiExtender WAN connection. FTNT offers its products and services globally.
FTNT has released the latest version its flagship operating system as 7.0 FortiOS. It has more than 300 new features and enhances the Fortinet Security Fabric and Fortinet’s ability to deliver continuous security for networks, endpoints, and clouds.
With more than 300 new features, FortiOS 7.0 enhances the Fortinet Security Fabric and Fortinet’s ability to deliver consistent security for all networks, endpoints, and clouds.
During the fourth quarter, ended December 31, 2020, FTNT’s revenue climbed 21% year-over-year to $748 million, led by its service revenue segment. Its total billings for the quarter climbed 19.8% to $960.9 million. Its EPS climbed to $0.89 from $0.67 posted in the same period last year, and its free cash flow at the end of the quarter was $264.2 million.
Analysts expect FTNT’s revenue for the quarter ending March 31, 2021 to be $679.1 million, representing a 17.7% increase year-over-year. Its EPS for the quarter is likely to increase 23.3% to $0.74.
FTNT ended Friday’s trading session at $164.73, rising 40.3% over the past year. During the past six months, FTNT gained 30%.
FTNT’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.
It has an A grade for Quality and B for Momentum. It is ranked #11 of 25 stocks in the Software – Security industry.
In total, we rate FTNT on eight different levels. Beyond what we stated above, we have also given FTNT grades for Growth, Value, Stability, and Stability. Get all the FTNT ratings here.
NLOK is one of the most popular cyber safety solution providers for consumers globally. Norton security solutions, its flagship product, is a subscription service that protects PCs and mobile devices against malware, viruses, adware, ransomware, and other online threats. The company also offers LifeLock identity theft protection solutions.
NLOK has agreed to acquire Avira in an all-cash transaction for nearly $360 million from Investcorp Technology Partners. Avira offers a consumer-focused portfolio of cybersecurity and privacy solutions to Europe and key emerging markets. The strategic alliance is believed to…
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