To Play Senate Cybersecurity Bill, Cramer Likes Fortinet Stock

Fortinet: Security for Your Portfolio?

Network security company, Fortinet is expensive, selling for 42 times next year's earnings, explains Mad Money's Cramer, but it makes a ton of sense to buy on any pullback, especially ahead of legislation being introduced in the Senate next week, which has rare bipartisan support.

A highly anticipated cybersecurity bill may be introduced in the U.S. Senate next week, according to published reports. According to Politico, the bill could surface ahead of a Senate Homeland Security and Government Affairs Committee meeting scheduled for Thursday.

Cramer thinks the legislation will likely require companies to take appropriate precautions against online threats. Even without Washington, though, he thinks companies will spend money on cybersecurity because it continues to be a costly problem. In turn, he recommends investors consider Fortinet, but only as a speculative play.

Based in Sunnyvale, Calif., Fortinet is the dominant provider of unified threat management technology. Basically, it offers clients a comprehensive, integrated suite of cybersecurity products and services. From firewalls to spam filtering, it offers the whole network security package, making it cheaper and easier for businesses to comply with any state or federal mandate on cybersecurity.

There’s just one problem, Cramer said. Fortinet’s stock is up 208 percent since he first recommended it in November 2009. The stock is currently selling for 43 times next year’s earnings with a 21 percent growth rate. Cramer doesn’t typically recommend buying stocks when they are trading at more than two times growth, as Fortinet is now. But he thinks we’re currently seeing a marketwide pullback, so now may be the perfect time to buy FTNT on a speculative basis.

Read on for the 10 Earnings Cramer's Watching Next Week

Call Cramer: 1-800-743-CNBC

Questions for Cramer? [e-mail]

Questions, comments, suggestions for the Mad Money website? [e-mail]