This cybersecurity stock is relatively cheap and has big growth ahead. How to get long with options
Fortinet continues to stand out in the cybersecurity space for its profitability leadership and differentiated push into AI-powered security solutions. With more than 500 AI-related patents and deep integration of FortiAI across its Security Fabric platform, the company is positioned at the forefront of defending against AI-enhanced cyber threats. The 2025 Fortinet Global Threat Landscape Report highlights the growing use of automation by cybercriminals, and Fortinet’s AI-driven product suite directly addresses this need, creating meaningful barriers to entry for competitors. Recognition in the 2025 Gartner Magic Quadrant for SASE Platforms further validates Fortinet’s leadership and suggests durable competitive advantages. For investors, the combination of profitability, attractive valuation relative to peers, and long-term growth drivers in AI security make FTNT an attractive candidate. Trade Timing & Outlook FTNT recently broke out above its $80 resistance level, with the breakout supported by strong relative performance versus the S & P 500. This breakout suggests potential follow-through toward the $95 level to fill the gap. Fundamentals Relative to peers, FTNT trades at a modest premium on forward P/E multiples, but its profitability metrics far exceed industry averages, justifying upside potential. Forward PE Ratio: 30x vs. Industry 24x Expected EPS Growth: 10% vs. 12% Expected Revenue Growth: 12% vs. 9% Net Margins: 31% vs. 9% Bullish Thesis AI-driven differentiation: Over 500 AI-related patents filed across Security Fabric accelerates autonomous threat detection and improves security operations. Competitive validation: Recognized as a Leader in Gartner’s 2025 Magic Quadrant for SASE Platforms, highlights credibility and customer adoption. Financial strength: Among the most profitable peers with 30.6% net margins, enabling continued reinvestment and market share capture while trading at the lowest valuation relative to its peer group. Strategic moat: AI and automation create long-term barriers for competitors, positioning Fortinet for sustainable growth in enterprise security budgets. Options Trade With an implied volatility rank of 21%, options are slightly elevated, making long vertical debit spreads attractive. I’m buying the Oct 31, 2025 $85/$95 Call Vertical @ $3.40 Debit. This entails: Buying the Oct 31$85 Call @ $4.38 Selling the Oct 31 $95 Call @ $0.98 The maximum reward is $660 per contract if FTNT is above $95 at expiration. The maximum risk is $340 per contract if FTNT is below $85 at expiration. View this Trade with Updated Prices at OptionsPlay This structure captures upside potential from the breakout and AI-driven growth thesis while maintaining a defined-risk profile and favorable reward-to-risk ratio. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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