Fortinet
FTNT
recently announced the acquisition of Panopta, a network monitoring and remediation innovator which delivers automated management and a complete picture of an enterprise network’s health.
Per the deal, Fortinet’s Security Fabric will be combined with Panopta’s SaaS-based Hybrid scalable network monitoring and diagnostics platform. This will enable Fortinet to provide a comprehensive network and security operations management solution to its customers.
Additionally, it will facilitate enhancements in the enterprise’s hybrid network infrastructure security and performance, powered by Fortinet’s security solutions. The new capabilities will provide real-time monitoring and effectiveness of the enterprise network including container, cloud, on-premise, and hybrid network.
Further, combination of the company’s FortiGate next-generation firewall and Secure Software-defined Wide Area Network (SD-WAN) solution with Panopta’s solution is expected to aid the performance of its SD-WAN connectivity.
Moreover, integration of its security orchestration, automation, and response platform with Panopta’s automated incident management solution will assist information technology teams to respond to real-time network health incidents with a single platform view.
Also, it will deliver cloud-native monitoring for Kubernetes and Platform as a Service workloads in
Amazon
’s
AMZN
Amazon Web Services and
Microsoft
MSFT
Azure.
Meanwhile, Fortinet’s shares are up 23.3% year to date compared to Zacks
Security
industry’s growth of 14.8%.
Fortinet, Inc. Price
Coronavirus-Led Security Demand Fuels Growth
Notably, coronavirus-induced social-distancing practices have compelled enterprises globally to work remotely. This has highlighted the need for enhanced security and network solutions for smooth running of business operations.
Per the IDC’s latest report,
worldwide security spending
is expected to reach $125.2 billion in 2020, reflecting 6% growth year over year. Further, it is likely to grow at a compound annual growth rate of 8.1% from 2020-2024, to reach $174.7 billion in 2024.
Accelerated demand for Fortinet’s security and networking products in the cybersecurity space, majorly driven by increased security spending by organizations, is a key growth driver.
Additionally, significant contribution from the company’s Secure SD-WAN solution has largely boosted its top line in the third quarter of fiscal year 2020. Markedly, Secure SD-WAN accounted for seven out of the 48 deals over $1 million won in the quarter. This strong momentum is likely to continue, thereby aiding revenue growth in the fourth quarter of fiscal 2020.
Zacks Rank & Stock to Consider
Fortinet currently has a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is
Avnet
AVT
. Avnet sports a Zacks Rank #1 (Strong Buy), at present. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Long-term earnings growth rate for Avnet is currently pegged at 19%.
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