Gen Digital Inc. Faces Mixed Market Performance Amid Growth Prospects
Valued at a market cap of $17 billion, Gen Digital Inc. (GEN) is a global cybersecurity company that focuses on consumer security, identity protection, and digital privacy solutions. The company was created through the merger of NortonLifeLock and Avast and is based in Arizona. Gen Digital offers a wide array of security products, including antivirus software, VPN services, and identity theft protection.
As a company with a market capitalization exceeding $10 billion, Gen Digital is classified as a “large-cap” stock. It serves millions around the globe, utilizing artificial intelligence and cloud-based technologies to address the growing threat of cyber attacks. With its robust recurring revenue model and commitment to innovation, Gen Digital is well-positioned to enhance its presence in the cybersecurity market.
Currently, shares of GEN are trading 12.6% lower than their 52-week high of $31.72, attained on December 4. Over the past three months, the shares have seen a decline of 1.2%, compared to an 11.3% decrease in the Technology Select Sector SPDR Fund (XLK) during the same period.
In addition, GEN Stock has increased by 1.3% over the last six months, surpassing XLK’s 6.1% decline. Over the past year, GEN shares have risen by 25.7%, while XLK has only returned 2.8%.
Reflecting its recent positive performance, GEN has traded above its 50-day and 200-day moving averages for several sessions, indicating bullish momentum.
The company’s third-quarter results, announced on January 30, showed a 4% increase in year-over-year revenue to $986 million, slightly exceeding analyst expectations. Additionally, adjusted earnings per share (EPS) grew by 14.3% to $0.56. Direct customer revenues rose to $869 million from $834 million, with a direct customer base expansion to 40.1 million and an average revenue per user (ARPU) of $7.27. Furthermore, the retention rate improved to 78%, showcasing strong customer loyalty.
Despite these advances, GEN has underperformed compared to competitor Check Point Software Technologies Ltd. (CHKP), which showed a 16.9% gain over the past six months and a notable 38.8% return over the past year.
Analysts view GEN with cautious optimism; the stock holds a “Moderate Buy” consensus rating from the seven analysts tracking it. The average price target of $33.57 indicates a potential upside of 21.9% from current levels.
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
