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Based in Tempe, Arizona, Gen Digital Inc. (GEN) is a leading cybersecurity company valued at $16.6 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.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Gen Digital fits this criterion perfectly. Its strong brand portfolio, featuring Norton, Avast, and LifeLock, boosts its market presence and customer loyalty across 150 countries.
Shares of the prominent cyber security company have slipped 1.2% from its 52-week high of $27.13, achieved on Sept. 19. Moreover, shares of Gen Digital have soared 10.7% over the past three months, outperforming the broader Nasdaq Composite's ($NASX) 1.6% gain over the same time frame.
In the longer term, GEN stock is up 17.5% on a YTD basis and has climbed 42.2% over the past 52 weeks. In comparison, NASX has delivered 36.1% gains over the past year and 19.7% returns in 2024.
GEN has been trading above its 200-day moving average since mid-May and over its 50-day moving average since mid-August, indicating a bullish trend.
Despite a strong price performance over the past year, GEN stock dropped 2.9% on Aug. 1 following the release of its Q1 earnings report. While its EPS met expectations, driven by strong demand for cyber safety solutions and increased sales in privacy and identity products, revenue came in below forecasts, contributing to the stock's downward movement.
Highlighting GEN's price performance, it's important to note that while its main competitor, Fortinet, Inc. (FTNT), has surged 33% over the past year, it still trails behind GEN. However, in 2024, FTNT takes the lead with a 32.3% gain.
Wall Street remains reasonably bullish about GEN stock’s prospects. Among the six analysts covering the stock, there is a consensus rating of “Moderate Buy,” and the mean price target of $28.40 reflects a 5.9% premium to current market prices.
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.
