Should I Buy Fortinet (FTNT)? Finance YouTuber Analysis

Joseph Hogue identifies Fortinet as one of his top five cybersecurity stocks, recommending it as a direct investment after using the CIBR ETF as a research tool. He highlights its strong past performance, outperforming the thematic ETF, and its position as a leader in the essential cybersecurity theme.

“The five cyber security stocks I like best. Crowdstrike holdings ticker CRWD. Palo Alto Networks P&W, Fortnet, FTN, Octa, OKTA, and Zcaler ticker ZS have returned an average 151% over the last 5 years versus an 87% return on that thematic ETF.”

The analyst recommends Fortinet for its clear leadership in profitability within the cybersecurity sector, boasting a 33% EBITDA margin, which is significantly higher than its peers. While not the cheapest, it offers a relatively better deal and strong operational efficiency.

“Here I'm going to have to go with Fortnite best, ticker FT&. It's not as cheap as Z or Octa, but still relatively better deal than those others and is a clear choice in terms of profitability.”

The YouTuber recommends Fortinet, highlighting its exceptional profitability and cash generation, which he considers a strong competitive advantage. Despite slower revenue growth, its financial strength makes it an attractive long-term holding in the cybersecurity sector.

“While Fortnet books almost the slowest revenue growth, no other company comes even close to its kind of profitability, this company is a cash machine.”

The YouTuber has been accumulating cybersecurity stocks, including Fortnet, since last year. He notes that Fortnet's recent earnings report, which beat expectations and increased full-year guidance, supports his view that AI is increasing demand for cybersecurity rather than diminishing it. He believes there is still value in these names.

“Fortnet's report proved what I've been saying, that AI is increasing cyber security demand rather than eating away at it. And there's still value left in these names.”

The YouTuber plans to continue holding Fortinet for its long-term cybersecurity story. Despite slower growth and AI fears, he highlights its efficiency with a 32% operating margin and attractive valuation metrics compared to historical levels.

“So, I'm going to continue to hold on for that long-term cyber security story.”

The YouTuber is adding to positions in Fortinet, arguing that fears of AI replacing cybersecurity companies are overblown. He expects strong revenue growth to continue, and that upcoming earnings reports will confirm this, leading to a bounce in the stock.

“I own and am adding to positions in Zscaler, ticker ZS, Crowdstrike Holdings, CRWD, Palo Alto Networks, PNW, and Fortnite, ticker FTN. Now, the trigger here in these stocks is going to be the quarterly earnings reports like we're coming into right now.”

The YouTuber suggests holding Fortinet, arguing that the market's negative reaction to AI's impact on cybersecurity is misguided. He believes AI will generate new security threats, thereby increasing demand for cybersecurity services. He views the recent sell-off as an opportunity, expecting the company's revenues to continue rising as investors re-evaluate the sector.

“Investors are going to come back into these shares and bid them up from these crazy low valuations.”

The YouTuber is actively buying Fortinet, along with other cybersecurity stocks, believing the market is now recognizing AI as an opportunity rather than a risk for these companies. He argues that the initial sell-off was a 'knee-jerk reaction' and that AI will boost demand for robust cybersecurity solutions, making these stocks attractive after their double-digit declines.

“I own all five stocks here. Crowdstrike, Zscaler, Palo Alto Networks, Fortnet, and Octa, and I'm actively buying more of some of these hardest hit over the next few months.”

The YouTuber includes Fortinet as a favored cybersecurity stock, part of a broader theme of increased spending on cybersecurity due to escalating global cyber threats. He suggests that all major cybersecurity names are good buys.

“also like Palo Alto Networks, Fortnet as well as Zscaler and Octa. So I own most of the big names in this. Okay. I think you don't necessarily have to go with any one particular name. I think all of these are good.”

The YouTuber recommends buying Fortinet on the dip, arguing that AI tools won't replace the comprehensive services provided by industry leaders like Fortinet. He advises accumulating shares monthly for long-term holding.

“These two stocks continue to be my favorites in the space along with Palo Alto Networks PW and Fortnite FTN. Now, these aren't must buy cheap territory. But instead of trying to time that rebound, I just put them a little bit more in each month, put them on a monthly buy list, and hold long-term.”

Fortinet is a cybersecurity stock with strong profitability, converting sales into profits more effectively than peers (28% profit margin). While the stock has pulled back, its valuation is becoming more attractive (under 10x P/S, 30x P/E), representing a discount to its historical average, making it a good long-term growth story.

“Fortnite is expected to grow sales at about the industry average around 12% a year, but it's the best at converting those sales into profits. The company produces a 28% profit margin while most in this space are spending so heavily on growth that they're posting earnings losses.”

The YouTuber recommends Fortinet as a favorite in cybersecurity, noting its top 10 operating profitability (31% operating margin) which is significant in an industry where many competitors post losses. Additionally, Fortinet is considered much cheaper than other cybersecurity stocks, trading at just nine times on a price-to-sales basis.

“Fortinet, ticker FT& stood out as one of my favorite stocks in cyber security, posting a top 10 operating profitability. That 31% operating margin is huge in the cyber security space where most of the companies like another favorite here, Zscaler, are posting operating losses.”

The YouTuber is buying Fortnet due to its leadership in the cybersecurity theme, which is identified as a long-term growth area. The stock is part of the First Trust Cybersecurity ETF (CIBR) holdings, indicating its prominence in the sector.

“Within the group here, I'm buying Palo Alto Networks, ticker PW, Crowdstrike Holdings, CRWD, Octa Inc., ticker Okta, Fortnet, FTN, and Zcaler ZS on their leadership in this theme.”

The YouTuber is buying Fortinet after its recent drop, noting that while its sales growth may not be as high as competitors, its operating margin is exceptionally strong and it is one of the least expensive stocks in the cybersecurity group on a valuation basis.

“It's why I'm also picking up shares of Fortnite ticker FTN after its drop. The company may not have the sales growth of others, but the profitability, its operating margin cannot be beat.”

The YouTuber identifies Fortinet as part of his favorite long-term cybersecurity theme and states he would pick up more shares on any dips. He emphasizes that cybersecurity is an 'unstoppable theme' and investors should be involved.

“And I'd be picking up more of these on any dips. Folks, this is a long-term unstoppable theme and you want to be involved in these cyber security names.”

The YouTuber sees Fortinet's recent 23% plunge after earnings as a buying opportunity, despite concerns about its product refresh cycle and slower growth in the firewall segment. He argues that Fortinet is a 'cash machine' with a 31% operating margin, dominating its niche, and is the second cheapest among its peers on a price-to-earnings and price-to-earnings-to-growth basis, making it an attractive value play within the cybersecurity theme.

“In fact I see it as a buying opportunity. Okay because we are still going to see that steady 12% plus growth across the industry.”

The YouTuber recommends Fortinet due to its dominant position in network security, particularly firewalls, and a significant refresh opportunity from its large installed base. Despite slower growth in its legacy segments, its best-in-class profitability provides cash flow to invest in higher-growth areas like SASE and unified security. He also notes its attractive valuation as the second cheapest on the list.

“Fortnet Inc. ticker FT&. A Fortnite has long been a dominant force in network security, especially firewalls in that on premises hardware.”

The analyst recommends Fortinet as part of a diversified cybersecurity portfolio, emphasizing the sector's long-term growth potential driven by escalating global cyber threats. Fortinet is considered a strong player within this essential and resilient industry.

“Within the theme, I own both of these along with Zcaler, ticker ZS, and Fortnite, FT&T. Showing you the bigger picture here with the sector spider sector tracker.”

The analyst recommends Fortinet due to its strong positioning in networking and security convergence, a segment expected to grow significantly. Despite slower revenue growth, Fortinet is a 'profit machine' with a 30% operating margin, making it the most stable and dependable on the list. The analyst sets a price target of $134.

“My price target of $134 per share is based on 2026 revenue of $7.6 billion times a 14 times price to sales multiple for a 22% upside.”

The YouTuber is buying Fortinet, citing its leading profitability in the cybersecurity sector, with over two-thirds of sales in network security. He notes the company's strong product lines, implementation of AI for threat detection, and its position as the cheapest stock on his list when adjusting valuation for growth.

“another cyber security name I've been looking to buy for a while shares a fortnet tier ftnt on its group leading profitability”

The YouTuber is buying Fortnet due to its strong position in the cybersecurity market, particularly in network security, and its superior profitability compared to competitors like Palo Alto. He notes its low price-to-earnings-to-growth valuation and its benefit from AI-driven security demand and implementation.

“I'm buying this one as well.”

The analyst recommends Fortinet due to its industry-leading profitability, specifically a strong 30% operating margin. Despite slower revenue growth compared to peers, its lower valuation on a price-to-earnings-to-growth multiple makes it an attractive buy in the growing cybersecurity sector.

“but that strong 30% operating margin and the lowest valuation on that price to earnings to growth multiple makes this one to own as well”

The analyst bought Fortinet shares before its earnings report, citing cybersecurity as his favorite theme due to strong growth driven by IoT and AI. He believes the demand for cybersecurity is pervasive and will not change, making it a confident investment.

“cyber security is easily my favorite theme right now not only for its strong growth but also for the confidence in returns behind all the tech changes the internet of things and artificial intelligence is a booming and pervasive demand for cyber security that's not going to change and I'm buying shares of zscaler crowd strike poo Alto networks and bought shares of fortnite before the earnings”

Fortinet is presented as a value play within the cybersecurity sector, with strong growth expected in network security and the integration of AI into its products. Despite a dip in revenue growth in 2023, a rebound is anticipated for 2024 with significant earnings growth, making its current valuation attractive compared to peers.

“At a reduced cost billion in Revenue growth slipped in 2023 but is expected to Rebound in 2024 with earnings up 91% for the year the sales weakness last year caused a crash in these shares now trading for just 39 times earnings.”

The analyst views Fortinet as a strong value play within the cybersecurity sector, noting its leadership in network security, strong profitability (twice that of Palo Alto), and its ability to leverage economies of scale. Despite a revenue growth slip in 2023, it's expected to rebound in 2024, making its current valuation attractive.

“as a value investor it's hard to overlook fortet ticker ftnt as one of the best deals in the group”

The YouTuber is increasing his position in Fortnet, viewing it as a long-term favorite. He is using cash from his 'barbell strategy' to buy growth stocks like Fortnet during market pullbacks, seeing current market conditions as an opportunity to acquire stocks at a discount.

“right now I've already increased my position on longer term favorites like Sofi technology charge Point Holdings and fortnet”

The YouTuber suggests buying Fortinet due to its leadership in the growing cybersecurity market and its current valuation. He notes that a recent sell-off has brought the stock down to nine times price-to-sales, which he considers a good entry point for a company with strong market share and consistent revenue growth.

“That recent selloff though has brought fortnet down to just nine times price to sales for a great opportunity to pick up these stocks at a discount.”

The YouTuber is buying Fortinet, noting that cybersecurity is a strong growth trend. Despite a weak Q3 outlook causing a 27% plunge, the company is still expected to post 22% sales growth, making its valuation attractive compared to its peers in the rarely cheap cybersecurity sector.

“The company is still expected to post 22 sales growth this year and cyber security is one of the strongest growth Trends over the next five to ten years.”

Fortinet is a top pick in the high-growth cybersecurity sector, leading with its hardware and software solutions. The company demonstrates exceptional annualized sales growth, four times the industry average, and higher profitability. It dominates the firewall market and possesses a defensible competitive advantage through its security-driven networking operating system.

“I think Fortinet is one of my favorites of this group analysts have an average Target price of 71 dollars a share over the next year about 53 percent higher from the current price.”

The YouTuber recommends Fortinet as a pure-play cybersecurity firm with strong revenue growth (20% annually since 2018) and improving operating margins (26%). He highlights the increasing demand for cybersecurity due to ransomware attacks and the company's competitive advantage with its ASIC technology and large customer base.

“Fortinet is the second largest cyber company by revenue and has a strong advantage in its asic technology now that's helped drive revenue growth of more than 20 percent annually since 2018 and that trend in cyber security should just help drive demand for years.”

The YouTuber expects Fortinet to significantly increase its stock price over the next 10 years, as it is perfectly positioned within the AI trend. He emphasizes its role in network security, acting as a firewall to ensure only authorized data enters or leaves a network.

“Ich persönlich glaube aber in den nächsten 10 Jahren werden diese drei Unternehmen noch mal deutlich in den Aktienkursen steigen, da sie halt eben genau perfekt in diesem KI Trend sich positioniert haben.”

The YouTuber has made significant profits from Fortinet and continues to view it as a strong long-term investment. He argues that cybersecurity, including Fortinet, will benefit immensely from the AI era, experiencing fundamental tailwinds that will lead to substantial returns over the next decade.

“Viele von euch wissen ja, ich habe jetzt mit Crowstrike ziemlich viel Kohle gemacht, mit Fortune ziemlich viel Kohle gemacht, so wie auch andere von euch auch, ne? Also seit Cyber, seit ja 2023 sage ich ja die ganze Zeit, Cybers Security ist für mich das offensichtliche Investment, was halt eben in dieser KI Era sehr sehr stark profitieren wird und daran hat sich auch nichts geändert.”

The YouTuber holds Fortinet as his second-largest position, emphasizing its fundamental strength. He believes that despite potential headwinds for hyperscalers and the broader market in 2027, Fortinet will trade significantly higher in 3-5 years, making it a strong long-term hold.

“Ich habe hier z.B. Fortunitet im Portfolio und das ist meine zweitgrößte Position, wie viele von euch wissen, bei vielen von euch ja tatsächlich auch. ähm dann braucht man sich auch nicht in die Hose machen.”

The YouTuber is bullish on Fortinet, having built a significant position during a period of underperformance. He emphasizes that despite a poor chart last year, the company's fundamentals and management are strong, making it an attractive long-term investment. He views periods of market frustration with fundamentally sound companies as opportunities for retail investors to accumulate shares.

“Ich persönlich auf der anderen Seite habe mich sehr stark, wie ja die meisten von euch wissen, mit den fundamentalen Daten des Unternehmens beschäftigt, mir einmal das Management ganz genau angeschaut, ich verfolge das Unternehmen eh schon seit ein paar Jahren und eben auch gesagt, ich sehe hier wirklich eine gute Chance.”

The YouTuber is bullish on Fortinet, citing its strong fundamentals, highly profitable business model, and dominant market position in cybersecurity, especially with its comprehensive security platform. He notes the acceleration in revenue growth, particularly in service revenue, which is a key indicator for future overall growth. The company also has a strong balance sheet and is gaining market share in growing segments, including AI. He suggests buying on a breakout above current resistance or on a pullback to support levels.

“Wenn wir noch mal zurückkommen und dann hier die 95 US-Dollar als Support respektieren oder halt etwas tiefer den Aufwärtstrend, dann ist das Ganze in Ordnung und dann wird meiner Ansicht nach mit einer sehr sehr hohen Wahrscheinlichkeit der nächste Anstieg dann zu Kursen führen, wo man sagen muss, diese Kurse, die wird man einfach nicht mehr sehen.”

Fortinet is presented as an example of a fundamentally strong company that required patience, enduring a 50% drawdown and three years to break even. However, those who held or bought more during the dip, understanding its strong fundamentals and 'Burggraben' (moat), achieved over 700% returns. The YouTuber uses his personal tool to confirm its good valuation metrics.

“Fortunite ist ein gutes Beispiel für Geduld, denn wie gesagt Fortunite hatte ja auch schon mal in der Vergangenheit hier krassere Abverkäufe von mehr als 50%. Ich habe das sogar erst vor kurzem als Beispiel genommen jetzt bevor das Ding hier so durchschallaten da war der Kurs ja auch noch günstig, wo ich ja immer wieder sagte, jo Leute, Fortnite ist gut aufgestellt, ne?”

The YouTuber recommends Fortinet, a cybersecurity company, arguing that AI advancements are making cyber threats more dangerous, leading to increased cybersecurity budgets. Fortinet's custom chips provide a competitive advantage, and its recurring subscription revenue model is attractive. The stock has recently pulled back and is now at a 'perfect entry moment' according to technical patterns.

“For me, this is pretty much perfect moment.”

The YouTuber sees Fortinet as a good investment, noting its strong revenue and margin growth, consistent earnings beats, and the potential for increased cybersecurity legislation. He believes two analysts' projections of an 18% upside are more realistic than the overall low forecast.

“I believe that they're a little bit closer to reality when you look at the fundamentals and how they've been performing I'm also tracking in the back of my mind that cyber security should have a lot more legislation tied to it and this is an area that Congress should have some firsthand knowledge on”