Fortinet Stock at Support Zone – Bargain or Trap?
Fortinet (FTNT) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($76.14 – $84.16), levels from which it has bounced meaningfully before. In the last 10 years, Fortinet stock received buying interest at this level 3 times and subsequently went on to generate 21.6% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 10/4/2024 | 6.2% | 7 |
| 11/5/2024 | 47.0% | 106 |
| 8/12/2025 | 11.5% | 83 |
Yet, a support zone alone isn’t enough; rebounds are more likely when fundamentals, sentiment, and market conditions line up. How does that look for FTNT?
Rebound unlikely short-term; headwinds outweigh tailwinds.
Fortinet’s Q3 2025 beat earnings and revenue, with strong product, SASE, and SecOps growth, plus record operating margins. However, service revenue deceleration for nine consecutive quarters and conservative Q4 guidance persist. A class-action lawsuit alleging misrepresentation regarding a product refresh cycle adds significant near-term pressure. While analyst targets still imply some upside, recent revisions are downward, reflecting these challenges, and the stock has underperformed year-to-date.
- Nvidia Stock’s Cheap 25x Multiple The Loudest Warning Yet?
- What Could Rocket Advanced Micro Devices Stock to New Heights
- The Risk Factors to Watch Out For in Tesla Stock
- PayPal Stock: Strong Cash Flow Poised for a Re-Rating?
- Does Alphabet Stock Still Have Room to Run?
- Is Wall Street Underestimating Las Vegas Sands Stock’s Potential?
How Do FTNT Financials Look Right Now?
- Revenue Growth: 14.8% LTM and 17.1% last 3-year average.
- Cash Generation: Nearly 30.9% free cash flow margin and 31.0% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for FTNT was 10.4%.
- Valuation: FTNT stock trades at a PE multiple of 32.3
| FTNT | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Systems Software | – |
| PE Ratio | 32.3 | 22.9 |
|
|
||
| LTM* Revenue Growth | 14.8% | 6.1% |
| 3Y Average Annual Revenue Growth | 17.1% | 5.4% |
| Min Annual Revenue Growth Last 3Y | 10.4% | 0.2% |
|
|
||
| LTM* Operating Margin | 31.0% | 18.8% |
| 3Y Average Operating Margin | 27.6% | 18.2% |
| LTM* Free Cash Flow Margin | 30.9% | 13.5% |
*LTM: Last Twelve Months | For more details on FTNT fundamentals, read Buy or Sell FTNT Stock.
And What If The Support Breaks?
FTNT isn’t immune to big drops either. It fell about 29% in the 2018 correction, nearly 38% during the Covid crash, and close to 38% again in the inflation shock. Even with strong fundamentals, the stock can take a serious hit when the market turns. Risk remains real, no matter the positives.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read FTNT Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
Still not sure about FTNT stock? Consider the portfolio approach.
Portfolios Over Individual Stock Picks
Stocks soar and sink – the key is staying invested. A balanced portfolio keeps you in the market, boosts gains and reduces single stock risk
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.