GEN · NASDAQ · STOCK
Gen Digital
$29.16
52W $17.78 – $32.22
59/100
$17.46B
16.8
1.21
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is GEN Bullish or Bearish?
Bullish.
Innellis AI committee rates Gen Digital (GEN) Buy with a composite score of 59/100
, based on 6 analysts with 50% agreement.
Last updated August 08, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +15.53 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -4.47 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — revenue growing 27.1% yoy -- genuine top-line momentum. Risk Analyst remains cautious — high leverage (debt-to-equity 3.14) amplifies downside in a stress scenario. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 39.9% shows genuine earnings power backing the valuation — Value
- Revenue growing 27.1% YoY -- genuine top-line momentum — Growth
- EPS growing 53.5% YoY — Growth
- 5 consecutive earnings beats -- consistent execution — Growth
- Price structure making higher highs and higher lows — Technical
- MACD histogram positive -- bullish momentum — Technical
Bear Case
- Price-to-book of 4.4x prices in significant intangible value — Value
- Debt-to-equity of 3.14 adds balance-sheet risk to the value case — Value
- RSI at 77 is in overbought territory — Technical
- Price trading above the upper Bollinger Band -- stretched — Technical
- High leverage (debt-to-equity 3.14) amplifies downside in a stress scenario — Risk
- Current ratio of 0.40 is tight -- limited short-term liquidity cushion — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of August 08, 2026
Overall Committee Score
59/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 44%
of 172 Technology peers
Value Analyst
neutral
50
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 39.9% shows genuine earnings power backing the valuation
− Price-to-book of 4.4x prices in significant intangible value
Growth Analyst
bullish
83
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ Revenue growing 27.1% YoY -- genuine top-line momentum
Technical Analyst
neutral
58
/ 100 · High confidence
Mixed or range-bound price action
+ Price structure making higher highs and higher lows
− RSI at 77 is in overbought territory
Risk Analyst
bearish
33
/ 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 3.14) amplifies downside in a stress scenario
Macro Analyst
bullish
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
62
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager
neutral
55
/ 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
Investment Thesis Evolution
Committee score moved marginally from 61.0 to 59.5.
- Committee agreement fell notably from 67% to 50%.
- New bearish signals: 3 appeared.
- Analyst(s) changed stance: Technical Analyst.
Analyst-level changes:
- Risk Analyst: +1 bearish signal(s).
- Technical Analyst: stance bullish->neutral; score 68->58 (-10); +2 bearish signal(s).
Comparing 2026-08-07 to 2026-08-08 (1 day apart).
Technical Analysis
RSI (14)
76.7
Overbought
MACD Histogram
0.148
Bullish Momentum
Trend Direction
Uptrend
Weekly: Sideways
Market Structure
Mixed
Support
$27.74
Resistance
$29.78
Bollinger %B
1.02
Above Upper Band
Price vs Moving Averages
EMA 9
$27.92
Above
EMA 21
$27.13
Above
EMA 50
$25.86
Above
EMA 200
$24.84
Above
Fundamental Analysis
Valuation
72
Growth
72
Profitability
91
Financial Health
0
Cash Flow
70
Valuation
P/E Ratio
16.8×
P/B Ratio
6.58×
PEG Ratio
0.21
Dividend Yield
1.71%
52W High
$32.22
52W Low
$17.78
Quality & Growth
ROE
3726.5%
ROA
624.2%
Gross Margin
7586.1%
Operating Margin
4209.5%
Revenue Growth YoY
—
Debt / Equity
3.07
AI Fundamental Assessment
P/E ratio of 16.8 (inexpensive relative to a 15-40x range); Price-to-book of 6.6x; PEG ratio of 0.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 37.3%; Return on assets of 6.2%; Net margin of 20.7%; Gross margin of 75.9%; Current ratio of 0.47 (tight short-term liquidity); Debt-to-equity of 3.07; Free cash flow per share is positive (2.58); Most recent quarter beat estimates by 2.0%; 5 consecutive earnings beats; EPS growth roughly steady (+4.7% -> +6.0% QoQ); Average YoY EPS growth of 10.9%; Analyst estimates rising over recent quarters
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