Shares of data security specialist Fortinet (NASDAQ: FTNT) rose 12.3% in February 2017, according to data from S&P Global Market Intelligence.
Let's have a look at Fortinet's stock chart for the month. I think it will clarify things very quickly:
Fortinet reported fourth-quarter earnings at the very start of last month, and it was a smashing success story. Both top-line sales and bottom-line earnings came in far ahead of analyst expectations, followed by a strong set of next-quarter and full-year guidance targets. Shares rose 13% overnight on the news, as investors were inspired by a classic beat-and-raise report.
Fortinet's strength is a wide-ranging product portfolio that covers security aspects of everything from the smartwatch on your wrist to the data center big-iron server that analyzes the fitness data your watch sends in -- and every point of the networks in between. The company calls it a security fabric, which offers stronger data protection than plugging in separate security tools for devices, networks, and servers.
Image source: Getty Images.
Investors can look back at market-beating returns of 22% so far in 2017, or 29% over the last 52 weeks. The stock isn't exactly cheap, trading at 204 times trailing earnings, but sometimes you get what you pay for. Fortinet is a quality business in a leadership position of a timely market, and it's often worth paying a premium for that combination.
10 stocks we like better than FortinetWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now...and Fortinet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of February 6, 2017.