Just a quick note to share some interesting data. These are the 20 best-performing S&P 500 stocks so far this year and over the last 10 years.
Fortinet (FTNT) Earnings Note
This cybersecurity stock (and Blue Harbinger Disciplined Growth Portfolio holding) released strong quarterly earnings results after the close on Tuesday (whereby it beat estimates and it raised forward guidance). The shares are up double digits as a result. In this quick note, we provide some color on its prospects going forward.
Attractive Cybersecurity Stock: High Growth, Profitable, On Sale
The cybersecurity business we review in this report is attractive for a variety of reasons, including its high growth, large total addressable market and attractive valuation. In particular, the shares have sold off hard as the low-interest-rate bubble has burst, but unlike other “pandemic darlings” this one is actually very profitable and generates powerful cash flow (therefore it won’t face the same growth-capital-raising challenges as others that will be paralyzed by higher borrowing rates, lower stock prices for new share issuances, and a slowed economy). Its valuation multiple has been crushed, but its business and earnings keep growing—and likely will for many years to come. We currently own shares.