5 American Stocks That Will Benefit from the New Cold War

In this article, we discuss 5 American stocks that will benefit from the new Cold War. If you want to see more stocks in this selection, check out 10 American Stocks That Will Benefit from the New Cold War. 

5. Fortinet, Inc. (NASDAQ:FTNT)

Number of Hedge Fund Holders: 43

Fortinet, Inc. (NASDAQ:FTNT) was incorporated in 2000 and is headquartered in Sunnyvale, California. The company provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cybersafety is a huge concern amid the new Cold War, which is a positive catalyst for American firms like Fortinet, Inc. (NASDAQ:FTNT). 

On September 15, Jefferies analyst Joseph Gallo initiated coverage of Fortinet, Inc. (NASDAQ:FTNT) with a Buy rating and a $65 price target. The company “represents a rare blend” of growth and GAAP profitability as it continues to work in the fields of converged security and networking, the analyst told investors in a research note. The analyst noted that businesses will employ a hybrid environment for the foreseeable future and the cyber/networking market is “massive.”

According to Insider Monkey’s data, 43 hedge funds were long Fortinet, Inc. (NASDAQ:FTNT) at the end of Q2 2022, compared to 39 funds in the last quarter. Jim Simons’ Renaissance Technologies is the biggest position holder in the company, with 4.8 million shares worth $272.3 million. 

Here is what ClearBridge SMID Cap Growth Strategy has to say about Fortinet, Inc. (NASDAQ:FTNT) in its Q3 2021 investor letter:

“Performance among our cohort of IT and Internet companies was mixed, with enterprise software makers thriving while more consumer-oriented stocks faced headwinds. Cyber security software maker Fortinet benefited from a heightened awareness of the need to protect against sophisticated attacks. We are attracted to the recurring revenue nature of these software companies that are increasingly delivering their products on a subscription basis through the cloud. Software business models also tend to avoid many of the inflationary issues facing companies with a physical product or service.”