Here's Why Gen Digital (GEN) is a Strong Momentum Stock

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement 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 types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes identifying undervalued stocks using financial ratios [3] - Growth Score focuses on a company's financial health and future growth potential [4] - Momentum Score identifies stocks with favorable price trends and earnings outlooks [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to assist in portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] - To optimize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks, even with high Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [10] Company Spotlight: Gen Digital - Gen Digital is a prominent player in the cybersecurity sector, known for brands like Norton Anti-Virus and Norton Internet Security [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong investment potential [11] - Gen Digital's Momentum Style Score is B, with a 5.8% increase in share price over the past four weeks [11] - Recent upward revisions in earnings estimates have led to a Zacks Consensus Estimate of $2.43 per share for fiscal 2026, reflecting a $0.04 increase [12] - The company has an average earnings surprise of 0.9%, further enhancing its attractiveness to investors [12]