Software Stock: Fortinet Inc. (FTNT): This Growth Stock Is Worth to buy

Fortinet Inc. is a prominent cybersecurity company known for its advanced network security solutions. Founded in 2000, the company provides a wide range of products and services, including firewalls, intrusion prevention systems, antivirus software, and secure access solutions. Fortinet is particularly recognized for its FortiGate firewall appliances, which combine security and performance in a single solution.

The Software Industry: An Overview

The software industry is experiencing significant expansion, fueled by emerging trends and technological innovations. As reported by Precedence Research, the global software market reached a valuation of $659.17 billion in 2023. Projections indicate that this market will grow at a compound annual growth rate (CAGR) of 11.8% from 2024 to 2034, potentially reaching $2.24 trillion by the end of this period. In 2023, North America led the market with a substantial share of 44%, while the Asia-Pacific region is anticipated to see considerable growth in the coming years.

A major factor shaping the market is the increasing adoption of artificial intelligence (AI). AI technologies are being integrated into software solutions to improve efficiency and automate repetitive tasks. A study by Salesforce found that 85% of IT leaders anticipate AI will enhance developer productivity within the next three years. This reflects a growing recognition of AI's ability to streamline workflows and optimize software performance.

Another significant trend is the shift towards cloud-based software. Organizations are moving away from traditional on-premises solutions in favor of cloud services, which offer greater flexibility, scalability, and cost-effectiveness. This transition enables businesses to access applications remotely across various devices, which is essential in today’s digital environment.

The 2024 AlgoSec State of Network Security report points to a notable trend towards multi-cloud environments. Based on surveys from the second half of 2022 and 2023, the research highlights key players such as AWS and Microsoft Azure. It indicates that security, continuity, and compliance are critical drivers for organizations adopting cloud platforms. While cloud adoption continues to rise, Azure remains the leading platform, with AWS quickly gaining traction.

Why Fortinet Inc is worth to buy?

Fortinet Inc. (NASDAQ) is a cybersecurity firm that specializes in developing and selling software and network security solutions. With a portfolio of over 50 enterprise-grade products, Fortinet offers the largest integrated suite available, designed to protect networks, users, and data from ever-evolving threats.

The company is focused on leading the rapidly expanding Unified SASE (Secure Access Service Edge) and Security Operations markets, while also aiming to increase its share in Secure Networking. Fortinet distinguishes itself as a SASE leader, being the only vendor recognized in multiple Gartner Magic Quadrant reports for both Single-Vendor SASE and various network security categories. By organically developing all SASE functions within a unified operating system, Fortinet provides a comprehensive stack that includes its industry-leading SD-WAN, ZTNA, Secure Web Gateway, CASB, firewall, and more, thereby enhancing user experiences and securing access to both on-premises and cloud applications.

Recently, Fortinet Inc. (NASDAQ) acquired Next DLP, a cloud-native data protection platform, allowing the company to enter the enterprise DLP market and strengthen its SASE solutions.

Fortinet is enhancing its Secure Ops portfolio by leveraging over a decade of AI expertise to offer advanced analytics and monitoring tools that continuously track access activities for potential cyber threats. In August, Fortinet also acquired Lacework, a platform focused on cloud security and cloud-native application protection. This acquisition significantly expands Fortinet’s security offerings and increases its total addressable market by $10 billion. Together with its AI-driven solutions, Fortinet is well-positioned to provide comprehensive protection across network, cloud, and endpoint environments.

Through its acquisitions of Next DLP and Lacework, Fortinet will gain over 900 new customers along with talented sales and engineering teams, further strengthening its market position.

Conclusion:

Fortinet Inc. (NASDAQ) has been a remarkable growth stock over the past five years, with revenue increasing at a compound annual growth rate (CAGR) of 23.11% and net income rising at a CAGR of 28.51%.

Currently, FTNT ranks 7th on our list of high-growth, profitable software stocks for 2024. While we recognize FTNT’s investment potential, we believe that AI stocks may offer even greater promise for higher returns in a shorter timeframe. If you're interested in an AI stock that shows more potential than FTNT and trades at less than five times its earnings, be sure to check out our report on the most affordable AI stocks.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.