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Tempe, Arizona-based Gen Digital Inc. (GEN) offers cyber safety solutions for individuals, families, and small businesses. Valued at a market cap of $17.9 billion, the company provides security and performance management, identity protection, and online privacy solutions.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and GEN fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the software - infrastructure industry. The company specializes in providing real-time protection against malware, identity theft, and online scams, leveraging advanced technologies such as AI-driven threat detection and automated cybersecurity solutions.
This cybersecurity company has slipped 10% from its 52-week high of $32.22, reached on Aug. 13. Shares of GEN have declined 1.3% over the past three months, underperforming the S&P 500 Index’s ($SPX) 11.4% rise during the same time frame.
In the longer term, GEN has gained 7.9% over the past 52 weeks, lagging behind SPX's 16.6% uptick over the same time period. Moreover, on a YTD basis, shares of GEN are up 5.9%, compared to SPX’s 13.3% return.
To confirm its recent bearish trend, GEN has been trading below its 50-day moving average since late August. However, it has remained above its 200-day moving average since early May.
GEN delivered strong Q1 results on Aug. 7, and its shares surged 7.7% in the following trading session. The company’s revenue improved by a notable 30.3% year-over-year $1.3 billion, while its adjusted EPS of $0.64 advanced 20.8% from the year-ago quarter. The rising demand for protection, trust, and financial empowerment served as tailwinds for the company. Additionally, GEN raised its fiscal 2026 guidance, further bolstering investor confidence. It now expects revenue to be in the range of $4.8 billion to $4.9 billion, and projects adjusted EPS to be between $2.49 and $2.56.
GEN has considerably lagged behind its rival, Zscaler, Inc. (ZS), which soared 70.5% over the past 52 weeks and 63.1% on a YTD basis.
Despite GEN’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the nine analysts covering it, and the mean price target of $36 suggests a 24.2% premium to its current price levels.
