Why Gen Digital (GEN) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four main types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score capitalizes on existing price trends and earnings outlook [5] - VGM Score combines the strengths of Value, Growth, and Momentum Scores for a comprehensive evaluation [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +25.41% since 1988 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [9] Stock Highlight: Gen Digital - Gen Digital is a prominent player in the cybersecurity sector, known for brands like Norton Anti-Virus [11] - Currently rated 3 (Hold) by Zacks, Gen Digital has a VGM Score of B and a Value Style Score of B, indicating attractive valuation metrics [11] - The company’s forward P/E ratio stands at 12.3, making it appealing to value investors [11] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.02 to$2.21 per share [12] - Gen Digital has an average earnings surprise of 0.9%, suggesting a solid performance outlook [12]