The stock market may not have been a happy hunting ground so far this year, but investors shouldn’t forget that buying shares of solid companies is a tried and tested way of enhancing one’s wealth.
The S&P 500, for instance, has averaged annual returns of 13.9% from 2011 through 2020. That’s why investors looking to get started in the stock market — even with a small amount such as $100 — should focus on the bigger picture and consider buying some solid stocks that are trading at relatively attractive valuations following their slide in 2022.
Fortinet provides firewalls, antivirus software, intrusion prevention systems, and other computer security products. So far in 2022, its shares are down nearly 13% despite the company’s impressive growth. This could be an opportunity for investors to get their hands on this cybersecurity stock at a relatively cheap valuation.
Of course, Fortinet isn’t all that cheap considering that it trades at 82 times earnings and 14 times sales, but the company is growing at a terrific pace to justify that valuation. In the first quarter of 2022, for instance, Fortinet’s revenue shot up 34% year-over-year to $955 million.
More importantly, its bookings, which refers to the total value of orders it received during the quarter, increased at a faster pace of 50% year-over-year to $1.28 billion. What’s more, Fortinet’s order backlog, which refers to the orders that have been received but not yet fulfilled, shot up to $278 million last quarter from $162 million at the end of 2021.
The growth in these metrics indicates that Fortinet should be able to sustain its fast pace of growth. Not surprisingly, the company expects to finish the year with $4.37 billion in revenue and $5.54 billion in billings. These numbers would translate into top-line growth of 31% and billings growth of 32% compared to 2021.
The prospects of the cybersecurity market suggest that Fortinet could keep growing at a solid pace for years to come. For example, the company’s total addressable market…