NortonLifeLock stock (NASDAQ: NLOK) is down 18% since the beginning of this year, but at the current price of around $21 per share, we believe that NLOK stock has around 15% potential downside.
Why is that? Our belief stems from the fact that NLOK stock is still up more than 25% from the low seen in March. Further, after posting weak Q1 2021 numbers, and having sold off its enterprise security business, it’s clear that NLOK did not benefit as much from the pandemic, as other internet security companies. Our dashboard What Factors Drove 10% Change In NortonLifeLock Stock Between 2018 And Now? provides the key numbers behind our thinking, and we explain more below.
NLOK stock’s rise since late 2018 came despite a 3% drop in revenues, which translated into a 3% drop in revenue per share, as the outstanding share count was roughly unchanged.
Norton’s P/S (price-to-sales) ratio