Investors with an interest in Technology Services stocks have likely encountered both Gen Digital (GEN) and Zeta Global Holdings (ZETA). But which of these two companies is the best option for those looking for undervalued stocks?
Gen Digital earns a Buy rating, trading at $28.73 and under 10x forward EPS, with undervaluation driven by evolving business mix. GEN's Trust-Based Solutions segment is the primary re-rating catalyst, delivering 24% revenue growth and leveraging a large customer base for financial wellness cross-selling. Cyber Safety remains a high-margin, cash-generating core, supporting debt reduction, dividends, and investment in higher-growth initiatives.
Gen Digital trades at a steep discount, with a forward P/E under 10 despite accelerating growth and robust cash flow. GEN's Cyber Safety business is stabilizing, with 61% margins and rising cross-sell penetration, while MoneyLion adds a second, faster-growing revenue stream. Management guides for 9–11% revenue and 14–18% EPS growth in fiscal 2027, supporting a Buy rating and 40% potential upside to $40/share.
Genuit Group LON: GEN said first-half trading remained challenging amid subdued construction demand, higher polymer costs and uncertainty linked to the Middle East conflict, but maintained its full-year expectations after reported revenue rose 3% and underlying operating profit declined only modestly.
GEN beats Q1 earnings and revenue estimates, posts double-digit bookings growth, and raises fiscal 2027 guidance as demand stays strong.
Gen Digital NASDAQ: GEN reported first-quarter fiscal 2027 results that exceeded its guidance, with revenue, bookings and earnings rising at double-digit rates as growth in trust-based solutions complemented continued momentum in its core cyber-safety business.
Gen Digital Inc. (GEN) Q1 2027 Earnings Call Transcript
Gen Digital (GEN) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.64 per share a year ago.
GEN heads into fiscal first-quarter earnings with AI-driven cyber safety demand supporting growth despite macroeconomic and consumer spending risks.
Gen Digital Inc. continues to report stable free cash flow through a slowly growing subscription base. MoneyLion has improved growth. GEN's stability is attractive in current market conditions, where a shaky consumer environment and AI uncertainty drive market volatility. GEN stock currently generates around a 10% cash flow yield, which is very attractive. I estimate GEN to have 56% upside to $41.0.
GEN tops Q4 estimates as Trust-Based Solutions revenues surge 121% and fiscal 2027 guidance moves higher.
Gen Digital (GEN) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.65 per share. This compares to earnings of $0.59 per share a year ago.