SentinelOne (S +0.10%) is the cybersecurity vendor behind Singularity, an artificial intelligence (AI)-powered platform designed to automate threat detection, incident response, and everything in between. With a market capitalization of just $4.6 billion, the company is much smaller than its main rivals CrowdStrike and Palo Alto Networks, which boast valuations north of $100 billion. But that might be an opportunity for investors.
The majority of the analysts tracked by The Wall Street Journal have given SentinelOne stock a buy rating, with none recommending selling. Their consensus price target points to strong potential upside from its current price of $13, and here’s why their bullish consensus might be justified.
Image source: Getty Images.
An AI-first cybersecurity platform
Malicious actors are using technologies like AI to launch faster, and more devastating cyber attacks than ever before. Human-led cybersecurity processes can no longer cope with the sheer volume of attempted breaches, so enterprises need to fight fire with fire by adopting AI-powered protection. That’s where SentinelOne’s Singularity platform comes in.
Singularity is a holistic solution that protects cloud networks, employee identities, endpoints (computers and devices), and more. It includes unique features like Storyline, which reconstructs cyber attacks and produces a detailed analysis complete with recommendations, saving human cybersecurity teams hours of manual investigative work.
A powerful AI agent called Purple AI can also be embedded into Singularity for an additional fee. It’s capable of making independent decisions by using advanced reasoning capabilities to identify and remediate threats in real time. It effectively behaves like a human security operations analyst, but with the ability to operate at machine speed. Purple AI had an attach rate of over 50% on all licenses sold during SentinelOne’s fiscal 2026 fourth quarter (ended Jan. 31), so it’s an extremely popular feature.
Today’s Change
(0.10%) $0.01
Current Price
$14.30
Key Data Points
Market Cap
$4.9B
Day’s Range
$14.28 – $14.86
52wk Range
$12.23 – $21.40
Volume
3.4M
Avg Vol
8.4M
Gross Margin
78.74%
SentinelOne’s adjusted profit soared in fiscal 2026
SentinelOne’s revenue grew by 22% year over year to $1 billion during fiscal 2026. It was the first time the company crossed the billion-dollar milestone. Management expects revenue to increase at a more modest pace of 20% in fiscal 2027, partly because it’s prioritizing profitability over outright growth.
The company’s total operating expenses grew by just 13% during fiscal 2026. Since revenue increased at a much faster pace, the company’s operating loss narrowed modestly to $321.3 million. However, after excluding one-off and non-cash expenses like stock-based compensation, SentinelOne actually produced a non-GAAP (adjusted) profit of $68.2 million at the bottom line, which was up by a whopping 351% from the prior year.
That translated to adjusted earnings of $0.20 per share, which management expects could almost double to $0.38 per share during fiscal 2027.
SentinelOne stock looks cheap compared to its rivals
The Wall Street Journal tracks 39 analysts who cover SentinelOne stock, and 21 have given it a buy rating. Two others are in the overweight (bullish) camp, while 15 recommend holding. Although one analyst has given the stock an underweight (bearish) rating, none recommend selling.
The analysts have an average price target of $19.23, which implies the stock could climb by 45% over the next 12 months or so. The Street-high target of $30 suggests there could be significantly more upside of 127% instead.
I think those targets are achievable because of SentinelOne’s attractive valuation. It trades at a price-to-sales (P/S) ratio of just 4.7, which is far below its unsustainable 2021 peak of over 120, when a frenzy in the tech market drove its stock to irrational heights. Further, it’s a steep discount to the P/S ratios of its bigger rivals CrowdStrike and Palo Alto Networks:
CRWD PS Ratio data by YCharts
CrowdStrike and Palo Alto have advantages over SentinelOne, including their incredible scale and deeper product portfolios, so they deserve their premium valuations. But even if SentinelOne stock were to soar by 127% from here, its P/S ratio would only rise to 10.6, so it would still be cheaper than Palo Alto Networks.
Plus, SentinelOne values its addressable market at over $100 billion, so it has barely scratched the surface of its opportunity based on its $1 billion in fiscal 2026 revenue. As a result, I think Wall Street is right to be bullish on this stock in the short term, but its long-term potential could be even greater.
