Fortinet: Fortinet: Bearish Reversal And Weakening Growth - Initiate Sell (Technical Analysis)

Summary The bearish reversal from a head and shoulders pattern is likely to continue as the technicals deteriorate again. Q4 earnings were strong as the recovery in revenue growth continued, while cash from operations growth hit a three-year high. Q1 guidance was overall weak, however, as growth is expected to slow significantly from Q4. The recovery in revenue growth is stalling. The P/S ratio's far-above-average level suggests overvaluation, as it is disconnected with the financials and outlook of the company. I initiate Fortinet at a sell rating, as further declines in the stock are likely due to both technical and fundamental factors. JHVEPhoto Thesis Despite the recent pullback, Fortinet, Inc. (NASDAQ: FTNT ) stock is still up nearly 25% over the past six months. However, I believe the bearish reversal has room to run. In the below analysis, I determine that the technicals are net bearish, with the JHVEPhoto Thesis Despite the recent pullback, Fortinet, Inc. (NASDAQ: FTNT ) stock is still up nearly 25% over the past six months. However, I believe the bearish reversal has room to run. In the below analysis, I determine that the technicals are net bearish, with the