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Headquartered in Tempe, Arizona, Gen Digital Inc. (GEN) is a leading cybersecurity company. Valued at $15.32 billion by market cap, it provides comprehensive cyber safety solutions for consumers across the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Renowned for its trusted brands, including Norton, Avast, LifeLock, Avira, AVG, ReputationDefender, and CCleaner, Gen Digital offers a wide range of services, from antivirus software to identity theft protection, ensuring robust digital security for individuals and businesses worldwide.
Gen Digital has significantly outperformed the broader market over the last year. The stock has gained 51% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.6%. However, in 2024, Gen Digital gained only 7.2%, lagging SPX's 11.3% gains on a YTD basis.
Zooming in further, GEN’s outperformance is less pronounced than First Trust NASDAQ Cybersecurity ETF (CIBR). The exchange-traded fund has gained about 33% over the past year. Moreover, GEN’s gains on a YTD basis outshine the ETF’s 3.6% returns over the same time frame.
Gen Digital’s shares gained more than 15% after the company reported better-than-expected EPS and revenue and offered promising guidance.
For the current fiscal year, ending in March 2025, analysts expect GEN’s EPS to grow 15.6% to $2.08 on a diluted basis. The company's earnings surprise history is mixed. It beat or matched the consensus estimate in the last four quarters.
Among the 5 analysts covering GEN stock, the consensus rating is a “Moderate Buy.” That’s based on three “Strong Buy” ratings, and two “Holds.”
This configuration is slightly less bullish than three months before, with four analysts suggesting a "Strong Buy."
On May 10, RBC Capital analyst Matthew Hedberg maintained a “Hold” rating on Gen Digital with a price target of $25.00, which indicates a 2.2% upside from the current levels.
The mean price target of $27 represents a 10.3% premium to GEN’s current price levels. The Street-high price target of $29 suggests an upside potential of 18.5%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
