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Based in Tempe, Arizona, Gen Digital Inc. (GEN) is a leading cybersecurity company valued at $15.4 billion by market cap. It provides comprehensive cyber safety solutions globally, with renowned brands like Norton, Avast, LifeLock, Avira, AVG, ReputationDefender, and CCleaner, offering services from antivirus software to identity theft protection.
Shares of Gen have outperformed the broader market over the past year. The stock has gained 21.5% over this time frame, while the broader S&P 500 Index ($SPX) has surged 17%. However, in 2024, Gen Digital gained only 7%, lagging SPX's 9.9% gains on a YTD basis.
Zooming in further, GEN’s outperformance is more evident when compared to the SPDR S&P Software & Services ETF (XSW). The exchange-traded fund has gained about 6.2% over the past year.
Despite its solid price performance over the past year, GEN stock dipped 2.9% on Aug. 1, after its Q1 earnings release, and has been on a downward trajectory since then. Its EPS met the consensus estimate thanks to strong demand in the cyber safety space, boosting sales of its privacy and identity offerings and enhancing direct customer sales and cross-selling opportunities. However, its revenue fell short of estimates, leading to a decline in price.
For the current fiscal year, ending in March 2025, analysts expect GEN’s EPS to grow 13.3% to $2.04 on a diluted basis. The company's earnings surprise history is solid. It beat or matched the consensus estimate in each of the last four quarters.
Among the six analysts covering GEN stock, the overall consensus rating is a “Moderate Buy.” That’s based on three “Strong Buy” ratings, and three “Holds.”
This configuration is slightly less bullish than two months before, with four analysts suggesting a "Strong Buy."
On Jul. 30, Barclays PLC (BCLYF) analyst Saket Kalia maintained a “Hold” rating on Gen Digital stock and set a price target of $25.
The mean price target of $26.80 represents a 9.7% premium from GEN’s current price levels. The Street-high price target of $29 suggests an upside potential of 18.8%.
On the date of publication, Kritika Sarmah 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.
