Savvy Trades and Investments

[SSKILLZ1]

GEN

Brought some GEN Today at $26.89. here is what I like.

I'm a big believer of cyber security whether that be for the consumer or business. often ways to play this secular trend are simply just too expensive. But GEN is the rare exception to that rule. I think GEN should get a 15 times next years earnings which to be fair will be numbers you don't even see after the march quarter, since they are a march year ender. but here is what I like.

 
 FY 25 Current Year Estimate $2.18-2.23(I expect it to be towards the top end here if not slightly exceed) 
 FY 24 $1.96 
 FY 23 $1.81 
 FY 22 $1.75 
 FY 21 $1.44 
 FY 20 $0.90 
 

As you can see they consistently have grown there earnings and the company expects there growth rate to be that of 12-15% annualized EPS Growth going foward in the coming years. Hence I expect about $2.50 Next year and about $2.85-2.90 the year after), and with the possible acquisition which is expected to be accretive, it might even be a year of growth that outpaces there averages.

They have been fantastic making acquisitions very profitable and driving synergies both on costs and on revs and improving margins so I fully expect this next acquisition to be very helpful for them. Which is another reason why I like this stock right now.

Stock is oversold and approaching support, so that is yet another plus from and entry point perspective.

Conclusion: I like GEN alot as there consistent solid growth in a space that has secular tailwinds is very attractive here. Furthermore given a 15 PE and about $2.50 earnings next year, I feel FV is in the upper 30's at least, which would be about a 40% return over the next 6-12 months from my purchase price. Time will tell. All is just my opinion, and I could always be wrong though.