Stock of the Day

May 17, 2023

Gen Digital (GEN)

$24.82
+$1.02 (+4.3%)
Market Cap: $14.25B

About Gen Digital

Gen Digital Inc. engages in the provision of cyber safety solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company offers security and performance products under Norton, Avast, Avira, AVG, and CCleaner brands that provide real-time protection and maintenance for PCs, Macs, and mobile devices against malware, viruses, adware, and other online threats. It also provides identity protection solutions, including LifeLock Identity Theft Protection, Avast and AVG Secure Identity, Norton Identity Theft Protection, and Dark Web Monitoring for monitoring of credit reports, financial accounts, the dark web, and social media accounts to help safeguard customers' personal information. In addition, the company offers Virtual Private Network (VPN) solutions under Norton, Avast and AVG brands to enhance security and online privacy that allows customers to securely transmit and access private information, such as passwords, bank details, and credit card numbers, when using public Wi-Fi on PCs, Macs, and mobile iOS and Android devices; AntiTrack and Secure Browser products which helps to keep personal information and browsing activity anonymous while browsing online; and Privacy Monitor Assistant and BreachGuard products for removing customers' data from public data broker sites; and ReputationDefender, a white glove service that helps customers manage all aspects of their personal branding online, including search results, social media sites, and overall web presence. It markets and sells its products and related services through retailers, telecom service providers, hardware original equipment manufacturers, and employee benefit providers, as well as e-commerce platform. The company was formerly known as NortonLifeLock Inc. and changed its name to Gen Digital Inc. in November 2022. Gen Digital Inc. was founded in 1982 and is headquartered in Tempe, Arizona.

Today's Trend

Gen Digital Inc. (NASDAQ: GEN) shares have been under significant pressure after the company’s reported pursuit of GoDaddy, but the latest guidance update and technical indicators provide potential reasons for a rebound.

  • Raised fiscal 2027 outlook: Gen Digital now expects fiscal 2027 EPS of $2.97, above the $2.87 analyst consensus, and revenue of approximately $5.5 billion versus the $5.4 billion consensus. The company also raised second-quarter fiscal 2027 guidance to $0.73 EPS and $1.4 billion in revenue, ahead of estimates of $0.70 and $1.3 billion, respectively. The stronger outlook could support investor confidence in the company’s underlying business.
  • Potentially oversold conditions: Gen Digital has lost 32.7% over four weeks, and technical analysis indicates the stock may be oversold. Analysts have also been revising earnings estimates higher, suggesting the recent selling could be nearing exhaustion and that a trend reversal is possible. Gen Digital Loses 32.7% in 4 Weeks
  • Management remains confident: Chief Executive Officer Vincent Pilette reportedly expects Gen Digital to reach the high end of its existing guidance, reinforcing the upgraded forecast.
  • GoDaddy acquisition remains a major catalyst: Gen Digital reportedly submitted a preliminary offer to acquire GoDaddy and has addressed related acquisition rumors. The deal could expand Gen Digital’s digital-security and online-services footprint, but its ultimate effect depends on transaction terms, financing, regulatory review and execution. Gen Digital Submits Preliminary Offer for GoDaddy
  • Acquisition uncertainty has weighed on the stock: Reports indicate Gen Digital’s shares entered a sharp decline after the GoDaddy takeover bid. Investors appear concerned about the size, financing, potential leverage and integration risks associated with a large transaction, even though management has sought to address the rumors. Gen Digital CEO Addresses GoDaddy Rumors
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