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Valued at a market cap of $17.1 billion, Gen Digital Inc. (GEN) is a leading provider of cybersecurity, online privacy, and identity protection solutions. Based in Tempe, Arizona, it serves customers across the globe, including in the United States, Canada, Europe, and Asia. Its offerings include real-time protection against malware, viruses, and online threats for PCs, Macs, and mobile devices.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Gen Digital fits this criterion perfectly. The company provides identity theft protection, VPN solutions, and privacy tools to safeguard personal information. Gen Digital continues to empower digital freedom by ensuring consumers' online security and privacy.
Shares of GEN are trading 12.6% below its 52-week high of $31.72. The security software maker has gained nearly 2% over the past three months, slightly surpassing the broader Dow Jones Industrials Average’s ($DOWI) 1.7% return over the same time frame.
Moreover, in the longer term, GEN stock is up 15.2% over the past six months, outperforming DOWI’s 8.9% gain. Shares of GEN have rallied 19.8% over the past 52 weeks, outperforming DOWI’s 14.8% returns over the same time frame.
To confirm its bullish trend, GEN has been trading above its 50-day and 200-day moving averages since last year despite some fluctuations. But, the stock has fallen below its 50-day moving average since Dec. 18.
Gen Digital's shares surged 8.2% following its Q2 earnings release on Oct. 30, driven by several key factors. The company reported a 3% year-over-year revenue increase to $974 million, surpassing analysts' estimates. Its adjusted earnings per share of $0.54 met expectations, demonstrating solid financial performance. Gen Digital also raised the lower end of its 2025 revenue forecast, signaling continued strong demand for its cybersecurity products. Additionally, the company forecasted Q3 revenue between $980 million and $990 million, with adjusted EPS projected to be between $0.54 and $0.56, driven by robust demand for its products amid growing cybersecurity concerns and the adoption of generative AI technology.
Nevertheless, GEN has lagged behind its rival, Check Point Software Technologies Ltd. (CHKP) 20.5% gain over the past six months and 23.4% return over the past 52 weeks.
Despite GEN’s outperformance relative to the Dow, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the eight analysts covering the stock, and the mean price target of $32.62 suggests a premium of 17.3% to its current levels.
