Fortinet Flashes Golden Cross: Is This Cybersecurity Stock Ready For More Gains?

Cybersecurity stock Fortinet Inc. FTNT has been on a bullish tear, with the stock up 31.48% year-to-date, 29.42% over the past year, and an impressive 32.37% in the last month alone. The cybersecurity powerhouse continues to flex its muscles, outperforming market expectations and delivering robust financial results.

The company’s second-quarter earnings report, released in early August, showcased a stellar performance. Fortinet reported a revenue surge of 11% year-over-year to $1.43 billion, surpassing the consensus estimate of $1.403 billion. The adjusted earnings per share also beat expectations, coming in at 57 cents versus the analyst estimate of 41 cents per share.

This earnings beat has given the stock a nice boost, reflecting the market’s confidence in Fortinet’s growth trajectory.

Betting Big On SASE And GenAI

Fortinet isn’t just resting on its laurels. On Tuesday, the company announced a significant expansion of its Unified SASE solution, integrating sovereign SASE and generative AI (GenAI) capabilities. Fortinet's Unified SASE is now even more robust, combining Secure SD-WAN with cloud-delivered security service edge (SSE) under a single console for seamless management and enhanced security.

CEO Ken Xie emphasized the strategic importance of these developments, stating, “We expect to emerge as a SASE leader, as we are the only vendor in the Gartner Magic Quadrant for Single-Vendor SASE that is also recognized in five different network security Magic Quadrant reports.”

Clearly, Fortinet is positioning itself to dominate the rapidly growing Unified SASE and Security Operations markets.

Golden Cross: Bullish Times Ahead?

Now, let’s talk technicals—Fortinet has just flashed a Golden Cross, a key bullish indicator that signals potential upward momentum. This occurs when the 50-day moving average crosses above the 200-day moving average, suggesting the stock might be poised for a stronger uptrend.

Chart created using Benzinga Pro

The stock is trading above its five, 20 and 50-day exponential moving averages, reinforcing the bullish sentiment.

Chart created using Benzinga Pro

Currently priced at $75.97, Fortinet stock’s eight-day simple moving average is at $75.11, while its 20-day and 50-day SMAs sit at $69.01 and $63.01, respectively—all indicating a bullish trend.

Read Also: Here’s How Much You Would Have Made Owning Fortinet Stock In The Last 10 Years

Chart created using Benzinga Pro

Even the Moving Average Convergence Divergence (MACD) indicator shows a value of 4.19, which points to continued bullish momentum.

The Bollinger Bands also suggest a bullish trend, with the stock trading in the upper band. However, with a Relative Strength Index (RSI) of 77.9, caution is advised as the stock is in overbought territory.

Fortinet Stock Is Riding The Bull

With a golden cross lighting the way and strong fundamentals backing its play, Fortinet seems to be in a prime position for further gains.

However, investors should keep an eye on overbought signals and potential consolidation before deciding their next move.

For now, though, Fortinet remains firmly in the bullish camp.

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