Fortinet Stock Is Rallying, But Is It Overbought Before Q4 Earnings?

Fortinet Inc FTNT will be reporting its fourth-quarter earnings on Thursday. Wall Street expects 61 cents in EPS and $1.59 billion in revenues as the company reports after market hours.

The stock is up 54.65% over the past year, 10.14% YTD.

Let’s look at what the charts indicate for Fortinet stock and how the stock currently maps against Wall Street estimates.

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Fortinet Stock Strongly Bullish Ahead Of Q4 Earnings

Fortinet stock is displaying strong bullish momentum ahead of its fourth-quarter earnings, with the stock trading above its five-day, 20-day and 50-day exponential moving averages. This technical setup indicates sustained buying pressure, a positive sign for continued upside.

Chart created using Benzinga Pro

The stock's eight-day simple moving average of $100.85 sits below the current price of $105.07, reinforcing the bullish trend. Additionally, Fortinet stock is trading above key support levels, with its 20-day simple moving average at $97.98, 50-day at $97.02 and 200-day at $76.59, signaling strength across short, medium and long-term time frames.

For investors, the technical indicators suggest Fortinet stock could extend gains if earnings meet or exceed expectations. The Moving Average Convergence Divergence (MACD) indicator at 2.24 supports the bullish momentum. However, with the Relative Strength Index (RSI) at 73.14, the stock is in overbought territory, which could lead to short-term volatility.

A strong earnings report could fuel further upside, while any disappointment may trigger profit-taking, making the $96-$97 range a key support zone for traders to watch.

Fortinet Analysts See 7% Upside

Ratings & Consensus Estimates: The consensus analyst rating on Fortinet stock stands at a Buy with a price target of $98.10. The latest analyst ratings from Cantor Fitzgerald, Baird and Rosenblatt imply a 7.44% upside for Fortinet stock, with a $112.33 price target.

FTNT Stock Price Action: Fortinet stock was trading at $104.16 at the time of publication.

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