12 Most Undervalued Cybersecurity Stocks to Buy According to Hedge Funds

6) Gen Digital Inc. (NASDAQ:GEN)

Forward P/E as of November 20: ~13.4x

Number of Hedge Fund Holders: 27

Gen Digital Inc. (NASDAQ:GEN) is engaged in providing consumer cybersecurity solutions. It offers solutions that enable consumers to protect their devices, online privacy, identity, and home networks.

Wall Street analysts are optimistic about Gen Digital Inc. (NASDAQ:GEN)’s growth potential, which stems from the favorable market environment and increased awareness of cybersecurity needs. Furthermore, a recent data breach at NPD increased consumer interest in identity protection services. This added momentum to the Gen Digital Inc. (NASDAQ:GEN)’s offerings.

In Q2 2024, the company expanded its customer base for the 5^th consecutive quarter, rising to 39.7 million, up 389,000 sequentially and up more than 1.1 million YoY.  This growth was mainly driven by international growth and increased demand for identity services.

Gen Digital Inc. (NASDAQ:GEN)’s successful cross-selling strategies, along with the development of NextGen’s product portfolio, should continue to contribute to its strong performance. Collaborating with banks, credit card companies, and other financial services providers is expected to allow Gen Digital Inc. (NASDAQ:GEN) to provide identity protection as a value-added service to a broader customer base. This might include real-time monitoring of financial transactions and credit reports.

Making investments in cutting-edge AI technologies should enhance the capabilities of Gen Digital Inc. (NASDAQ:GEN)’s identity protection services, improving threat detection and offering more personalized protection. This might set the company’s offerings apart in a competitive market.

As per Wall Street analysts, the shares of the company have an average price target of $31.83.