Tag: Fortinet

3 Stocks That Could Turn $1,000 Into $5,000 by 2030

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Growth stocks are your best choice for ensuring your investment portfolio not only beats inflation but also increases steadily in value to help you better prepare for your retirement. Many investors have been touting the strengths and benefits of the “Magnificent Seven” group of stocks and are familiar with their characteristics.

The problem with large growth stocks is that size itself is a limiting factor — it can be tough for a huge organization to grow quickly. For that reason, it pays to look at medium-sized growth companies. Their smaller size and customer base provide significant leeway for them to grow rapidly, underpinned by growing demand for their products or services. It helps if they have tailwinds that can propel their revenue and earnings higher, helping the share price to do the same.

Armed with these characteristics, such stocks could multiply your wealth more quickly than the larger growth stocks. Here are three stocks with the potential to increase your investment portfolio by fivefold or more by 2030.

Image source: Getty Images.

1. Fortinet

Fortinet (NASDAQ: FTNT) is a cybersecurity firm that has a portfolio of more than 50 enterprise-grade products. The company utilizes machine learning and artificial intelligence (AI) technologies to identify threats and keep organizations safe. With more businesses digitalizing and using cloud software, Fortinet should also enjoy increased demand for its products.

For 2023, the company’s revenue rose 20.2% year over year to $5.3 billion, while operating income jumped 28% to $1.2 billion. Net income came in at $1.1 billion for the year, up nearly 34%. The business also generated a positive free cash flow of $1.7 billion for 2023, which was nearly 20% higher than what was churned out in the previous year.

The momentum has carried over into the first quarter of 2024, as Fortinet reported a 7% year-over-year improvement in revenue to $1.35 billion. Of note, service revenue leaped 24% to $944 million for the quarter, and the cybersecurity specialist also generated a positive free cash flow of $609 million.

In early May, Fortinet announced the sector’s first-ever generative AI Internet of Things (IoT) security assistant to enhance the software’s operations and allow any individual to use natural language to utilize the software, thus eliminating the need to specifically train staff to handle the software.

Management has identified a total addressable market of $144 billion this year that could potentially grow to $222 billion by 2028, thus giving the business ample opportunity to grow its revenue and profits over time.

2. Braze

Braze (NASDAQ: BRZE) provides a customer engagement platform that allows marketers to collect and analyze data from any source. By doing so, these marketers can better engage their customers and tailor messages for them across different channels.

The company posted encouraging financial numbers for its fiscal 2024, which ended Jan. 31, 2024. Revenue climbed 32.7% year over year to $471.8 million, with gross profit surging by 35.3% year over year to $324.3 million. Operating cash flow turned positive for fiscal 2024, and Braze is close to generating positive free cash flow. The company is guiding for revenue of $572.5 million for fiscal 2025, representing a growth rate of 21.3%.

Braze is also seeing significant traction when it comes to garnering customers. Total customer count increased by 15% year over year to 2,044 for the fourth quarter of the fiscal year while customers with more than $500,000 of annual recurring revenue shot up 29% year over year to 202. Total remaining performance obligations surged by 40% year over year to $639.2 million, also for the fourth quarter.

The company is not limiting itself to specific sectors but is cutting across different industries such as media and entertainment, health and fitness, and travel and hospitality in search of more customers. Braze is also expanding internationally in countries such as Singapore, Indonesia, and Australia, and management is finding opportunities in different facets of many organizations.

With its unique value proposition and growing presence in 75 countries, Braze looks set to continue its breakneck growth.

3. Samsara

Samsara (NYSE: IOT) operates a platform that helps complex organizations improve their safety and efficiency. The company makes use of artificial intelligence (AI)-powered programs to protect employees, improve asset utilization, and lower maintenance costs.

Samsara reported a nearly 44% year-over-year jump in revenue to $937.4 million for its fiscal 2024, which ended Feb 3, 2024. Gross profit climbed almost 47% year over year to $690.4 million. The business saw a sharp improvement in operating cash flow, going from negative $103 million in the prior year to negative $11.8 million, and could be on its way to positive operating cash flow soon.

Samsara also witnessed good customer momentum as customers paid more for the company’s services. For the fourth quarter of fiscal 2024, Customers with $100,000 or more in annual recurring revenue (ARR) shot up 49% year over year to 1,848, while those paying $1 million or more in ARR leaped 61% year over year to 82. Customers with more than $100,000 in ARR now make up slightly more than half of Samsara’s total customer base, up from 45% two years ago.

The company’s strategy of “land and expand” showed that 53% of its net new annual contract value (ACV) was made up of expansion customers, while the remainder were new customers. What’s more, 16% of the latest quarter’s net new ACV came from international customers, a testament to Samsara’s ability to expand its network to more countries. Samsara expects fiscal 2025’s revenue will grow 27% to 28%, putting total sales at around $1.19 billion at the midpoint.

Should you invest $1,000 in Braze right now?

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Royston Yang has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fortinet. The Motley Fool recommends Braze and Samsara. The Motley Fool has a disclosure policy.

3 Stocks That Could Turn $1,000 Into $5,000 by 2030 was originally published by The Motley Fool

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May 31, 2024
Did a Hacker Gang Create a Botnet Out of 3 Million Electric Toothbrushes?

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The answer is: No, but you’d be forgiven for having believed that was the case since a viral news story made the rounds earlier this week claiming it was so.

The Animal Kingdom Imagines a World of Humans Turning Into Animals

The story in question was published by a Swiss newspaper, Aargauer Zeitung, and claimed that three million electric toothbrushes had been tied into a botnet, which was then used by cybercriminals to carry out a financially damaging DDoS attack on a Swiss company’s website. The source of the story were researchers from Fortinet, a well-known security company based in California.

This story, which sounded just crazy enough to be true, was subsequently recycled by numerous English-speaking outlets, including Tom’s Hardware, ZDNet, and others. There was a certain logic to it. Cybercriminals can be very creative when it comes to using smart hardware to build malicious networks; the Mirai cybercriminals notably used over 100,000 smart devices to build one of the most notorious botnets ever. Why not use a smart toothbrush or two?

The problem, however, is that not all smart devices are built alike. The toothbrush story unraveled after security experts on X began chiming in about the ridiculousness of this scenario. Some said that it was basically impossible, given that smart toothbrushes connect to Bluetooth, not the internet. A story from 404 Media cited skeptical security experts, who called into question the validity of the narrative.

Now, the story has been officially deemed false. According to Fortinet, the Swiss journalists who initially spread the story misinterpreted their researchers during an interview, which then caused U.S. outlets to uncritically pick up the false narrative and further circulate it. In a statement shared with ZDNet, Fortinet clarified that the toothbrush incident had not actually happened, and was more of a thought experiment than anything:

“To clarify, the topic of toothbrushes being used for DDoS attacks was presented during an interview as an illustration of a given type of attack, and it is not based on research from Fortinet or FortiGuard Labs. It appears that due to translations the narrative on this topic has been stretched to the point where hypothetical and actual scenarios are blurred.

Covering cybersecurity as a journalist can be tricky. Many stories are pitched as research by security companies, and those companies are incentivized to elaborate a bit in their research findings to get more attention for their business. Indeed, the Swiss newspaper at the center of the toothbrush drama has now come out and blamed Fortinet for falsely claiming that the story was real. The paper claims, in a statement posted to its website, that the excuse of a “translation error” is, itself, made up:

[Translated from German by Google Translate] What the Fortinet headquarters in California is now calling a “translation problem” sounded completely different during the research: Swiss Fortinet representatives described the toothbrush case as a real DDoS at a meeting that discussed current threats…

Fortinet provided specific details: information about how long the attack took down a Swiss company’s website; an order of magnitude of how great the damage was. Fortinet did not want to reveal which company it was out of consideration for its customers.

The text was submitted to Fortinet for verification before publication. The statement that this was a real case that really happened was not objected to.

Gizmodo reached out to Fortinet for more information on how this tall tale got so much circulation and will update our story if it responds.

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Lucas Ropek

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February 8, 2024
Why Fortinet, CrowdStrike, and Palo Alto Networks Stocks Zoomed Higher Today

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Wednesday is shaping up to be a good day to own cybersecurity stocks: Powerful fourth-quarter earnings from network security company Fortinet (NASDAQ: FTNT) sent its stock up by 3%, and provided a tailwind to shares of peers CrowdStrike (NASDAQ: CRWD), and Palo Alto Networks (NASDAQ: PANW). Through 11:45 a.m. ET, those two stocks were up 5.8% and 7%, respectively.

Reporting its fourth-quarter results Tuesday after the close, Fortinet beat expectations on both the top and bottom lines. Instead of the $0.43 per share (adjusted) profit on $1.41 billion in sales it was expected to report, the company earned $0.51 per share on sales of $1.42 billion.

Fortinet Q4 sales and earnings

TheFly.com has counted no fewer than 16 analysts raising their price targets on Fortinet in response to its report. And yet, how good was Fortinet’s news, actually?

You might be surprised to learn that it actually wasn’t all that great. True, sales for the quarter grew by a respectable 10% year over year. But billings — which foreshadow future revenue growth — grew by only 8.5%, implying a slowdown may lurk just around the corner.

Non-GAAP profits exceeded expectations, and were up a strong 16%. But earnings as calculated according to generally accepted accounting principles were only $0.40 per share for the quarter — flat year over year. Worst of all, free cash flow plummeted by 67% to just $165 million.

Most of these numbers, by the way, reflected a significant slowdown in growth compared to Fortinet’s performance earlier in the year. Over the course of 2023, Fortinet scored sales growth of 20%, billings growth of 14%, non-GAAP profits growth of 37% — and GAAP earnings growth of 38%. (To give credit where credit is due, however, its free cash flow for the year did grow 19%.)

What does Fortinet’s earnings beat mean for CrowdStrike and Palo Alto Networks?

So yes, Fortinet “beat earnings.” And yes, investors in peer cybersecurity companies CrowdStrike and Palo Alto Networks have reason to breathe a sigh of relief … for now. All that being said, as an investor in one of these three stocks (Palo Alto), Fortinet’s performance in Q4 actually has me feeling just a tiny bit nervous. Consider this:

On top of the slowdown seen in Q4, Fortinet’s guidance for the first quarter — and for 2024 as a whole — holds reasons for worry. Management is predicting that sales in Q1 will land in the $1.3 billion to $1.36 billion range. The entirety of this range falls short of Wall Street’s consensus expectation of $1.37 billion. Similarly, for the year, Fortinet predicts revenues between $5.72 billion and $5.82 billion — but Wall Street wants to see $5.93 billion.

Granted, on earnings, the near term looks a bit better. Fortinet’s Q1 guidance for non-GAAP earnings per share of $0.37 to $0.39 implies the company thinks it could beat Wall Street’s forecast for $0.37 per share. But the midpoint of the company’s earnings guidance for the year implies the company might struggle to earn the $1.67 per share that analysts are expecting it to earn — and Fortinet gave no guidance at all for GAAP profits, nor for free cash flow.

Now, look ahead to the upcoming earnings reports from Palo Alto Networks (due Feb. 20) and CrowdStrike (due March 5). In each case, Wall Street has its expectations set high, predicting that Palo Alto will report 24% quarterly earnings growth in Q4 … and that CrowdStrike will grow its profits by 75%. Those are aggressive targets. Even more worrisome is the fact that analysts will want to see both companies express similarly high hopes for 2024. To avoid disappointing investors, Palo Alto must promise to keep on growing its earnings at 24% for another year. CrowdStrike, meanwhile, must promise an accelerating growth rate: 92% growth.

With both of these stocks already trading at extremely high multiples to forward earnings — 64.5 for Palo Alto and 81.3 for CrowdStrike — they look priced for perfection. Any stumble on earnings day — be it in the actual results they report or the future earnings they predict — could send either or both stocks plummeting.

Caveat investor.

Should you invest $1,000 in Fortinet right now?

Before you buy stock in Fortinet, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fortinet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

See the 10 stocks

*Stock Advisor returns as of February 5, 2024

Rich Smith has positions in Palo Alto Networks. The Motley Fool has positions in and recommends CrowdStrike, Fortinet, and Palo Alto Networks. The Motley Fool has a disclosure policy.

Why Fortinet, CrowdStrike, and Palo Alto Networks Stocks Zoomed Higher Today was originally published by The Motley Fool

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February 7, 2024
Kowal Investment Group LLC Makes New Investment in Fortinet, Inc. (NASDAQ:FTNT)

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Kowal Investment Group LLC bought a new stake in Fortinet, Inc. (NASDAQ:FTNT – Free Report) in the 1st quarter, Holdings Channel.com reports. The fund bought 3,854 shares of the software maker’s stock, valued at approximately $256,000.

A number of other hedge funds have also recently added to or reduced their stakes in FTNT. AustralianSuper Pty Ltd grew its holdings in Fortinet by 37.8% in the first quarter. AustralianSuper Pty Ltd now owns 1,961,918 shares of the software maker’s stock valued at $130,389,000 after purchasing an additional 538,213 shares during the period. Daymark Wealth Partners LLC grew its holdings in shares of Fortinet by 66.5% during the 1st quarter. Daymark Wealth Partners LLC now owns 9,352 shares of the software maker’s stock worth $622,000 after purchasing an additional 3,734 shares during the period. Shaker Investments LLC OH raised its holdings in Fortinet by 1.3% in the first quarter. Shaker Investments LLC OH now owns 41,687 shares of the software maker’s stock valued at $2,771,000 after buying an additional 520 shares during the period. DnB Asset Management AS grew its stake in Fortinet by 5.3% during the first quarter. DnB Asset Management AS now owns 117,134 shares of the software maker’s stock worth $7,785,000 after buying an additional 5,902 shares during the period. Finally, MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH raised its stake in shares of Fortinet by 89.1% in the 1st quarter. MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH now owns 249,465 shares of the software maker’s stock valued at $16,579,000 after acquiring an additional 117,508 shares during the period. 64.21% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Fortinet

In other Fortinet news, Director William H. Neukom purchased 423 shares of the business’s stock in a transaction dated Tuesday, April 11th. The stock was bought at an average cost of $67.40 per share, for a total transaction of $28,510.20. Following the completion of the acquisition, the director now directly owns 290,716 shares in the company, valued at $19,594,258.40. The purchase was disclosed in a filing with the SEC, which can be accessed through the SEC website. In related news, Director William H. Neukom bought 423 shares of Fortinet stock in a transaction that occurred on Tuesday, April 11th. The stock was acquired at an average price of $67.40 per share, for a total transaction of $28,510.20. Following the completion of the purchase, the director now owns 290,716 shares in the company, valued at $19,594,258.40. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Keith Jensen sold 5,050 shares of Fortinet stock in a transaction dated Thursday, May 18th. The stock was sold at an average price of $68.23, for a total value of $344,561.50. Following the sale, the chief financial officer now directly owns 4,572 shares in the company, valued at $311,947.56. The disclosure for this sale can be found here. Insiders sold a total of 67,128 shares of company stock worth $4,504,788 in the last 90 days. 17.54% of the stock is owned by company insiders.

Fortinet Stock Performance

Shares of NASDAQ FTNT opened at $74.31 on Thursday. The company has a market capitalization of $58.35 billion, a P/E ratio of 61.41, a price-to-earnings-growth ratio of 3.50 and a beta of 1.15. The business’s 50-day moving average price is $69.01 and its two-hundred day moving average price is $61.68. Fortinet, Inc. has a one year low of $42.61 and a one year high of $76.27. The company has a debt-to-equity ratio of 86.92, a current ratio of 1.34 and a quick ratio of 1.24.

Fortinet (NASDAQ:FTNT – Free Report) last released its quarterly earnings data on Thursday, May 4th. The software maker reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.05. The business had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.20 billion. Fortinet had a net margin of 20.46% and a negative return on equity of 282.54%. Fortinet’s quarterly revenue was up 32.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.17 EPS. Analysts anticipate that Fortinet, Inc. will post 1.19 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several analysts recently issued reports on FTNT shares. Mizuho raised their price objective on Fortinet from $68.00 to $74.00 and gave the company a “buy” rating in a research report on Monday, April 17th. Truist Financial began coverage on Fortinet in a report on Friday, April 21st. They set a “buy” rating and a $82.00 target price on the stock. Morgan Stanley upped their price target on Fortinet from $70.00 to $77.00 and gave the stock an “overweight” rating in a report on Wednesday, April 19th. Jefferies Financial Group boosted their target price on shares of Fortinet from $70.00 to $80.00 and gave the stock a “buy” rating in a research report on Thursday, April 20th. Finally, Bank of America raised their price target on shares of Fortinet from $75.00 to $83.00 in a report on Friday, June 16th. Seven investment analysts have rated the stock with a hold rating and twenty-six have given a buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $72.57.

Fortinet Company Profile

(Free Report)

Fortinet, Inc provides cybersecurity and networking solutions worldwide. It offers FortiGate hardware and software licenses that provide various security and networking functions, including firewall, intrusion prevention, anti-malware, virtual private network, application control, web filtering, anti-spam, and wide area network acceleration.

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July 6, 2023