Fortinet Inc. (FTNT): Among the Best Technology Stocks to Buy for Long-Term Investment
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Fortinet, Inc. (NASDAQ:FTNT)
3-Year Revenue CAGR: 19.64%
Number of Hedge Fund Holders: 61
Fortinet, Inc. (NASDAQ:FTNT) is a cybersecurity company that provides networking & security solutions. It also offers AI-driven security operation solutions that identify, protect, detect, respond, and recover from threats. The company serves large enterprises, communication service providers, government organizations, and small to medium-sized enterprises.
The company’s Unified SASE (Secure Access Service Edge) grew over 110% in security service edge billings year-over-year in Q1 2025, which propelled the overall unified SASE billings growth to 18%. FortiSASE penetration among large enterprises saw a ~10% sequential increase and reached 11%. The company also offers Sovereign SASE, which is a solution for organizations that require full on-premise or in-country data control, particularly for highly regulated sectors.
On May 8, Scotiabank lowered the price target on Fortinet, Inc. (NASDAQ:FTNT) to $115 from $135 while keeping an Outperform rating despite the company’s solid Q1 2025 billings performance. Unified SASE and SecOps accounted for 25% and 10% of the total billings, respectively. Management at Fortinet also stated that the US-China tariffs did not impact fundamentals this quarter.
Conestoga Capital Advisors stated the following regarding Fortinet, Inc. (NASDAQ:FTNT) in its Q4 2024 investor letter:
“Fortinet, Inc. (NASDAQ:FTNT) is the worldwide market share leader in network security firewalls (by units). During the quarter, FTNT continued to see positive momentum in firewall services revenue and posted a big beat and raise of results and guidance. Looking ahead, the company is expecting a larger-than-normal product refresh cycle, with many customers ordering well in advance (often one year prior) of their firewall’s 2026 end-of-life schedule.”
Overall, FTNT ranks 13th on our list of the best technology stocks to buy for long-term investment. While we acknowledge the growth potential of FTNT, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FTNT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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