If You'd Invested In Gen Digital 5 Years Ago, Here's the Gain You'd Have
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Here's a closer look at the Gen Digital performance over the past five years, major drivers behind the company's growth and how much you'd have now if you had invested in the stock five years ago.
Next, check out the best-performing stocks in the S&P 500 over the past 20 years.
Gen Digital, previously known as NortonLifeLock, has built a name for itself in the software industry. Over the years, the company has expanded its offerings beyond antivirus protection by also providing identity protection and digital threat solutions. These services cater to over 500 million users in more than 150 countries worldwide.
One of the major revenue drivers of Gen Digital is from subscriptions to its various software offerings. Unlike businesses that rely on one-time software sales, Gen Digital's customers pay for ongoing protection, ensuring a steady income stream.
Gen Digital's growth has been modest. To fuel its growth and diversify its offerings, the company announced in December 2024 its plan to acquire the fintech business MoneyLion Inc. (NYSE:ML).
'By bringing MoneyLion into the Gen family, we're not only helping people protect what they already have, we're extending our capabilities to enable people to better manage and grow their financial wealth,' said Vincent Pilette, CEO of Gen Digital.
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Gen Digital has had moderate growth over the last five years. When the COVID-19 pandemic hit in March 2020, the demand for online security solutions surged. At the time, Gen Digital's share price stood at around $18. As lockdowns happened in many countries, the broader stock market tanked. However, companies offering cybersecurity solutions — like GEN — soared. Over the past five years, shares of Gen Digital stock rose over 40%.
While the GEN stock price has gone up, overall growth has slowed due to the fierce competition from its rivals like Check Point Software Technologies (NASDAQ:CHKP) and Cloudflare (NASDAQ:NET). Despite the stiff competition, however, Gen Digital has continued to generate consistent revenue.
If you invested in Gen Digital in March 2020 and held it until today, how much would you have gained?
GEN stock price in March 2020: $18
GEN stock price in March 2025: $28
Stock price growth: 56%
Here's a breakdown of how much you'd have if you invested these amounts in Gen Digital five years ago:
Initial Investment
Final Value
Total Gain
$1,000
$1,560
$560
$3,000
$4,680
$1,680
$5,000
$7,800
$2,800
$10,000
$15,600
$5,600
While the growth isn't as explosive as some growth tech stocks, it's significantly higher than the average 10% return of the S&P 500. You'd have gained a solid return if you invested in Gen Digital in 2020.
Plus, Gen Digital pays dividends, which — especially reinvested — would increase your earnings.
After growing more than 50% over the past five years, the question remains: Is Gen Digital worth a buy now?
The company has a considerable market share in the cybersecurity space. With digital threats becoming more sophisticated, the demand for cybersecurity and identity protection services will likely continue to rise. Gen Digital has positioned itself well with its suite of security offerings catering to both individuals and businesses.
Yahoo Finance analyst recommendations are split between buy and hold — of 10 analysts, five recommend holding, but four give it a 'buy' rating, and one gives it a 'strong buy.'
While the company has generally performed well over the years, its growth has slowed down compared to its rivals. So, whether Gen Digital stock is a buy or not depends on your financial goals and risk tolerance. If you're looking for a cybersecurity stock with long-term growth potential, Gen Digital could be worth considering.
Editor's Note: GOBankingRates is a Gen Digital company. This content is not provided by Gen Digital. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Gen Digital.
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This article originally appeared on GOBankingRates.com: If You'd Invested In Gen Digital 5 Years Ago, Here's the Gain You'd Have
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