The October 2020 stock of the month is Fortinet Inc (NASDAQ: FTNT). Fortinet is a leading cybersecurity company. This is the second time we picked Fortinet for the stock of the month. The first time was in January 2019, when the stock was still trading at $69.85.
In this video, we discuss:
- Three Reasons We Like Fortinet Stock
- Risk of Owning Fortinet Stock
- Five Year Price Prediction for Fortinet Stock
NOTE: This article was originally published on October 9, 2020. The article was updated on October 18, 2020, to add the video.
STATS (as of OCTOBER 9, 2020)
Closing Price: $126.18
Share Outstanding (from 10Q): 161.6 million
Market Cap: $20.4B
Revenue (Q2 2020): $615.5 million
Revenue Growth (yoy): 18.0%
Net Income (Q2 2020): $112.1 million
Diluted EPS (Q2 2020): $0.69
Diluted EPS Growth (yoy): 64.3%
SHOULD I BUY THIS STOCK?
Fortinet could be a good addition to a portfolio that wants exposure to:
- Information Technology Sector
- Software Industry
- Cybersecurity Stocks
- Mid Cap Growth Stocks
Be sure to do your own research and determine if Fortinet is a good stock for your portfolio.
HOW MUCH OF THIS STOCK SHOULD I BUY?
Here are some portfolio guidelines we Wolves try to live by:
- Thou shalt not hold more than 35% in any one particular sector
- Thou shalt not invest more than 10% of principal into one individual stock
- Thou shalt make small purchases. The general rule of thumb is to spend no more than 2% of your portfolio on a single purchase and build up your position over time.
These portfolio guidelines have helped me tremendously through my 20+ years of investing.
BOTTOM LINE
In an increasingly digital world, cybercrime will continue to escalate. Fortinet is a leading cybersecurity company that is poised to benefit from this megatrend.
So what do you think about Fortinet? Let me know in the comments section.
Disclosure
I/we own shares of FTNT
Except for Wolves of Investing, I/we are not receiving any compensation from and do not have any business dealings with any companies whose stocks are discussed in this article.
Want to learn the principles that help me to consistently beat the market? Check out my free eBook, 5 Things I Wish I Knew Before Buying My First Stock.
DISCLAIMER: I'm not a financial advisor. These are my opinions and provided "as-is". It is not an offer to buy or sell securities. Read the Terms and Conditions.
Donnie Nguyen
Donnie Nguyen is the founder and CEO of Wolves of Investing. He started investing in the stock market in the early 2000s. He follows the teachings of Peter Lynch, Warren Buffett, and other investing legends. When he's not investing or blogging, he loves spending time with his family traveling and experiencing the world.
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