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.

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.

“It all comes down to who controls the Strait of Hormuz,” Dalio wrote in a lengthy post on X. If Iran retains the ability to control, or even negotiate over, who passes through the Strait—through which roughly a fifth of the world’s oil supply flows daily—Dalio argues the U.S. will be seen as having lost the war, regardless of how the conflict is resolved.

Dalio compared a potential U.S. failure at Hormuz to Britain’s humiliation during the 1956 Suez Canal Crisis, a moment widely regarded by historians as the end of the British Empire’s global imperialism. He pointed to a pattern he says has repeated across 500 years of history: a rising power challenges the dominant empire over a critical trade route while the world watches, and money and alliances shift fast toward whoever wins.

When that dominant power, the holder of the world’s reserve currency, is “overextended financially,” as Dalio has often argued (including recently in Fortune) and then “reveals its weakness” by losing control over the conflict. “Watch out for allies and creditors losing confidence, the loss of its reserve currency status, the selling of its debt assets, and the weakening of its currency, especially relative to gold,” he wrote. 

The post arrives at a moment of confusion around who has control over the Strait of Hormuz. The Strait has been effectively closed for its third week, though there are signs that a small trickle of vessels getting through. President Trump disparaged American allies throughout the weekend, and then again on Monday afternoon for failing to provide military support to help secure the waterway. He then reversed course and said that the U.S. didn’t “need anybody” and was the strongest country in the world. Iranian Foreign Minister Abbas Araghchi said on Sunday that the Strait of Hormuz “is open and only closed to enemies.” Unresolved questions remain on whether Iran mined the Strait, which would be an irreversible escalation if true. 

Dalio framed both sides as locked into a conflict with no diplomatic exit. “While there is talk of ending this war with an agreement, everyone knows that no agreement will resolve this war because agreements are worthless,” he wrote, adding that whatever comes next—whether the U.S. takes control of the strait or leaves it to Iran—”is likely to be the worst phase of the conflict.”

The core problem, Dalio said, is motivational asymmetry. For Iran’s leadership, the war is “existential,” a matter of regime survival, national pride, and religious commitment. For Americans, it’s about gas prices, and for U.S. politicians, it’s about the midterm elections. Dalio was clear over which side that calculus favors in a prolonged fight: “In war, one’s ability to withstand pain is even more important than one’s ability to inflict pain.”

Iran’s strategy, he says, is to inflict that pain for as long as possible, then wait for the U.S. to quit, just as it has done in Vietnam, Afghanistan, and Iraq.  

Trump is now calling on allied nations to join a multinational escort operation through the strait, though for the most part, they haven’t yet been receptive. Dalio says it remains to be seen whether that effort can serve as a potential “solution” to getting the waterway reopened.

“If President Trump demonstrates his and the U.S.’s power to do what he said he would do, which is win this war by having free passage through the Strait of Hormuz and eliminating Iran as a threat to its neighbors and the world, it will greatly bolster confidence in his and the U.S.’s power.”

But if he doesn’t, the ripple effects, on everything from trade flows, to capital markets and the dollar’s reserve currency status, could irreparably damage American hegemony. Tehran has also threatened the dominance of the petrodollar by reportedly agreeing to open the Strait of Hormuz to a limited number of oil tankers that trade in yuan rather than dollars.  

“Both sides know that the final battle, which will make clear which side won and which side lost, still lies ahead,” Dalio wrote.