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Is Gen Digital Stock Underperforming the S&P 500?
Yahoo Financeยท 2025-09-22 12:55
Company Overview - Gen Digital Inc. (GEN) is based in Tempe, Arizona, and specializes in cyber safety solutions for individuals, families, and small businesses, with a market cap of $17.9 billion [1] - The company provides security and performance management, identity protection, and online privacy solutions, positioning itself as a large-cap stock in the software-infrastructure industry [2] Financial Performance - GEN reported a significant revenue increase of 30.3% year-over-year, reaching $1.3 billion, and an adjusted EPS of $0.64, which is a 20.8% increase from the previous year [5] - The company raised its fiscal 2026 guidance, expecting revenue between $4.8 billion and $4.9 billion, and adjusted EPS between $2.49 and $2.56, which has positively influenced investor confidence [5] Stock Performance - GEN's stock has declined 10% from its 52-week high of $32.22, reached on August 13, and has underperformed the S&P 500 Index, which rose 11.4% over the same three-month period [3][4] - Over the past 52 weeks, GEN's stock has gained 7.9%, lagging behind the S&P 500's 16.6% increase, and on a year-to-date basis, GEN is up 5.9% compared to the S&P 500's 13.3% return [4] Market Position - Despite recent underperformance, analysts maintain a moderately optimistic outlook for GEN, with a consensus rating of "Moderate Buy" from nine analysts and a mean price target of $36, indicating a potential 24.2% upside from current levels [6] - GEN has significantly lagged behind its competitor, Zscaler, Inc. (ZS), which has seen a 70.5% increase over the past 52 weeks and a 63.1% increase year-to-date [6]