Fortinet, Inc. (FTNT) shares were trading at $75.30 on August 7th with trailing and forward P/E of 30.00 and 30.49 respectively. The company delivered a strong Q2, beating expectations with 14% revenue and 15% billings growth. Despite a 25% stock plunge due to a completed hardware refresh cycle, Fortinet remains best-in-class with high financial metrics.

Despite a recent 37% drop from all-time highs, Fortinet has a founder-led team, high insider ownership, and a significant moat. The company is strategically positioned in high-growth verticals like SecOps and SASE, with a disciplined approach to stock-based compensation. The current valuation, while not cheap, presents a compelling long-term investment opportunity.

A previous bullish thesis on Fortinet highlighted its innovation and strong balance sheet. The stock has depreciated by approximately 24% since then due to an underwhelming hardware refresh cycle. However, Last-Cat-7894 sees the market’s reaction as an overreaction, presenting a buying opportunity for long-term investors. Hedge funds have reduced their holdings in FTNT, but the company still remains a strong investment option.

Fortinet, Inc. is not among the 30 Most Popular Stocks Among Hedge Funds, with 62 hedge fund portfolios holding FTNT at the end of Q1. While FTNT shows promise as an investment, other AI stocks may offer greater upside potential with less downside risk. For those interested in an undervalued AI stock benefiting from current trends, consider exploring a free report on the best short-term AI stock.

Read more at Yahoo Finance: Fortinet, Inc. (FTNT): A Bull Case Theory