FTNT Lost 24% In A Week. Do You Buy Or Wait?
Fortinet (FTNT) stock is down 23.6% in 5 trading days. The stock looks fairly priced at the moment, though history suggests you may benefit from buying dips. Consider the following data:
- A $57 Bil company with $6.1 Bil in revenue currently trading at $74.39.
- Last 12 month revenue growth of 13.8% and operating margin of 31.5%.
- Has Debt to Equity ratio of 0.0 and Cash to Assets ratio of 0.5
- Currently trading at P/E multiple of 30.4 and P/EBIT multiple of 25.4
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 148% within a year. See FTNT Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for FTNT, see Buy or Sell FTNT Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and FTNT drops another 20-30% to $52.07 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.
Below is a deep dive into Fortinet (FTNT) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock has been more resilient than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
Before that, as a quick background: FTNT provides integrated, automated cybersecurity solutions and secure networking products, including hardware and software licenses for security, switching, and connectivity across multiple global regions.
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2022 Inflation Shock
- FTNT stock fell 38.3% from a high of $80.28 on 17 July 2023 to $49.52 on 7 November 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 9 October 2024
- Since then, the stock increased to a high of $114.57 on 19 February 2025 , and currently trades at $74.39
| FTNT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -38.3% | -25.4% |
| Time to Full Recovery | 337 days | 464 days |
2020 Covid Pandemic
- FTNT stock fell 37.6% from a high of $24.27 on 6 February 2020 to $15.14 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 May 2020
| FTNT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -37.6% | -33.9% |
| Time to Full Recovery | 52 days | 148 days |
2018 Correction
- FTNT stock fell 29.0% from a high of $18.46 on 1 October 2018 to $13.10 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 12 April 2019
| FTNT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -29.0% | -19.8% |
| Time to Full Recovery | 109 days | 120 days |
Worried that FTNT could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.