Fortinet (NASDAQ:FTNT) is an up-and-coming cybersecurity company. Founded in 2000, FTNT stock has built a solid reputation as a strong contender in the enterprise security space. And given the rate of change in the space, it has done well to continue its growth while adapting to new needs from customers and new threats from hackers.

It certainly had its ups and downs in the latter stages of 2018, but still has managed to post a strong 63% return in the past 12 months. This reflects the fact that while the broader tech sector was under threat, certain sectors didn’t experience the same kind of selloffs as others.

Tailwinds for FTNT Stock

Even as many overvalued tech firms were getting cut down to size in anticipation of slower growth moving forward, Fortinet posted these solid returns and is still trading at a trailing price-to-earnings ratio of over 100. That many seem a bit irrational, but there are three key trends that keep FTNT in such a lofty position.

The first is its sector. Cybersecurity is absolutely crucial for any type of business that is operating on the internet. Whether its about sharing art, articles or financial transactions, security is paramount.

And the more sensitive the industry, the more crucial the security.

The challenge with many businesses is not that they don’t find security important, but it’s about prioritizing it. For example, if you’re a young company that is raking in clients, are you going to spend on sustaining that growth or security? On the other hand, if you’re a company that is trying to keep its head above water, are you going to beef up your security infrastructure or invest in growing your revenue base and revamping your product line.

These are the challenges cybersecurity companies face when selling their products. But the fact is, at some point or another no business can do without security.

The second reason FTNT stock remains a strong buy is the cloud. When the cloud was just developing, many system administrators thought the cloud was simply a new place to put information so people could steal it.

The IT folks were highly skeptical about storing data in the cloud because they weren’t confident that it could be secured. There are more points of failure when a company moves its data to the cloud. And more points of failure are something most system engineers like to avoid.

But that has shifted over time, and now the cloud is a transformative technology, and companies that aren’t there or planning on migrating there look like dinosaurs.

FTNT has transitioned into the cloud with its powerful, multifaceted Security Fabric concept that helps feature all its hardware and software solutions.

Finally, mobility is now a reality. Whether mobility fostered the cloud or the cloud fostered mobility is a moot point. Both complement each other and are the new reality.

Also bear in mind that 5G is starting to gear up and that means mobile speeds that are 1000 times faster than current 4G technology. That’s a lot more data — and a lot more opportunities for security threats.

And that’s why FTNT stock is still a highly prized pick.

Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.