Risk/Reward Rating: Negative
Fortinet (NASDAQ:FTNT) traded down 16% on 8-4-22 following its Q2 2022 earnings report. The selloff follows an attempted breakout above the 200-day moving average the previous day. The rejection at such a critical technical moment creates a decidedly bearish technical picture. Given the elevated valuation at 69x trailing earnings, the technical breakdown suggests that time is required for the bearish trend to fully play out.
Most would agree that the cybersecurity industry offers one of the more robust long-term outlooks. This fact and Fortinet’s success to date, should place Fortinet on the watchlist of all growth stock investors.
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