Jonathan Kitchen/DigitalVision via Getty Images Investment Thesis Cybersecurity company SentinelOne, Inc. (NYSE:S) is slated to announce their Q2 FY25 earnings next week on Tuesday, August 27th, after markets close. The company's results will come a day before its larger peer, CrowdStrike Holdings, Inc. (CRWD), reports the most anticipated earnings report of this earnings season on August 28th, where industry watchers and markets will closely follow updates & commentary from CrowdStrike's management followi ...

SentinelOne’s (S) shares have declined 16.9% in the year-to-date (YTD) period, underperforming the Zacks IT Services industry’s decline of 0.2% and the broader Zacks Computer & Technology sector’s 18% growth.It has been suffering from a challenging macroeconomic condition and tighter financial conditions, which continue to impact customer buying behavior. High interest rate and persistent inflation continue to negatively impact enterprise spending. These factors, along with a revamp of SentinelOne’s go-to-m ...

In the latest market close, SentinelOne (S) reached $22.79, with a +1.97% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.61%, and the technology-centric Nasdaq increased by 0.03%.Prior to today's trading, shares of the cybersecurity provider had gained 2.15% over the past month. This has outpaced the Computer and Technology sector's loss of 7.5% and the S&P 500's loss of 3.2% in that time.The in ...

Group 1: Upstart - Upstart's stock has fallen over 93% from its former high, but there is potential for recovery as the lending environment improves and revenue begins to grow again [4][3] - The company uses proprietary AI technology to evaluate loan applicants, claiming it provides better credit access and fewer defaults compared to traditional credit scores [2] - Upstart has expanded its network of lender partners from 10 to over 100 since going public and has diversified its offerings to include auto loans and home equity lines of credit [2] Group 2: SentinelOne - SentinelOne's stock has decreased by 70% from its peak valuation, but the company continues to show strong growth, with revenue exceeding $674 million and positive free cash flow of $33 million last quarter [5][7] - The company operates in the cybersecurity sector, which is projected to grow from $193 billion in 2024 to over $500 billion by 2032, indicating significant market opportunities [7] - SentinelOne's forward price-to-sales ratio is under nine, which is lower than competitors like CrowdStrike and Zscaler, suggesting potential for a higher valuation as profitability improves [7]

CrowdStrike's tech blunder might open the door for SentinelOne to benefit.Cybersecurity has become an integral component in today's digitally connected world. It's so significant that when CrowdStrike (CRWD -3.34%) accidentally released a software glitch to its cybersecurity platform, it caused a global tech outage on July 19.CrowdStrike's mistake can contribute to competitors capturing customers who may have otherwise considered the cybersecurity giant. SentinelOne (S -5.55%) is one such potential benefici ...

Sundry Photography Just a few days ago cyber-security firm CrowdStrike Holdings (CRWD) was responsible for the large global IT outage causing the grounding of air planes, the shutdown of millions of Windows devices and other disruptions. With CrowdStrike's stock getting hammered as a result, a key competitor, SentinelOne, Inc. (NYSE:S) is emerging as a potential beneficiary in the cyber-security market. As investors struggle to ascertain the impact of the IT outage on CrowdStrike's business, I think some cu ...

Group 1: Core Investment Thesis - Cybersecurity stocks are gaining attention, particularly SentinelOne, which may benefit from CrowdStrike's recent issues, positioning it as a potential investment opportunity [1][3] - SentinelOne is recognized for its advanced technology, specifically its Singularity platform that utilizes AI for autonomous security protection, achieving high performance in benchmark tests [2][4] - The company is experiencing strong growth, with revenue exceeding $1 billion and new product launches contributing significantly to bookings, indicating a robust growth trajectory [3][4] Group 2: Market Potential - The market for AI-native cybersecurity is projected to grow from $100 billion to $225 billion by 2028, highlighting significant growth opportunities for SentinelOne, which is currently under $1 billion in annual sales [5][6] - Despite being smaller than competitors, SentinelOne has secured contracts with three Fortune 10 companies, demonstrating its capability to attract large clients [5][6] Group 3: Valuation and Financials - SentinelOne is trading at approximately a 50% discount compared to other leading cybersecurity stocks, making it an attractive investment option [7][9] - The company has recently generated positive free cash flow, indicating improving financial health and potential for future profitability [9][10] - With a current market valuation of $7 billion, there is significant upside potential if SentinelOne can replicate the success of larger competitors like CrowdStrike, which was valued at nearly $100 billion [10]

Company Performance - SentinelOne closed at $23.11, reflecting a -1.28% change from the previous day, which lagged behind the S&P 500's daily loss of 0.51% [1] - Over the past month, shares of SentinelOne gained 22.12%, outperforming the Computer and Technology sector's loss of 2.41% and the S&P 500's loss of 0.26% [1] - The upcoming earnings disclosure is anticipated, with a forecasted EPS of -$0.01, indicating an 87.5% increase from the same quarter last year, and a projected revenue of $197 million, representing a 31.84% rise year-over-year [1] Full Year Estimates - For the full year, analysts expect earnings of $0.03 per share and revenue of $811.41 million, marking changes of +110.71% and +30.63% from the previous year [2] - Recent changes to analyst estimates suggest a positive outlook for SentinelOne's business, with positive revisions indicating favorable short-term business trends [2] Valuation Metrics - SentinelOne has a Forward P/E ratio of 900.39, significantly higher than its industry's Forward P/E of 28.26, indicating a premium valuation [3] - The company has a PEG ratio of 16.56, compared to the average PEG ratio of 3.27 for the Computers - IT Services industry [3] Industry Context - The Computers - IT Services industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 93, placing it in the top 37% of over 250 industries [4] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

Sundry Photography Opportunity Within the Cybersecurity Sector With the increasing demand for protection against cyberattacks, investors recognize the potential returns from high-growth cybersecurity stocks. This trend is reflected in the HACK ETF's near 60% price increase over the last five years. Companies like Palo Alto Networks, Inc. (PANW) and Zscaler, Inc. (ZS) are gaining attention from politicians and analysts alike. However, it's crucial to differentiate whether this growth is organic and sustainab ...

Group 1: Core Insights - SentinelOne (NYSE:S) is positioned as an attractive investment opportunity due to the recent troubles faced by rival CrowdStrike (NASDAQ:CRWD), which experienced a significant system outage impacting various industries [1] - SentinelOne specializes in cybersecurity, focusing on protecting enterprise-level clients' endpoints, cloud workloads, and identification credentials using advanced technologies like artificial intelligence [1] - The average cost of data breaches is rising, making endpoint security essential for enterprises, thus enhancing the appeal of SentinelOne's offerings [1] Group 2: Technical Analysis - The technical profile for SentinelOne has turned bullish, with the stock gaining over 6% in the past five sessions, while CrowdStrike suffered a loss of more than 30% during the same period [2] - SentinelOne's stock reached an intraday high of $24.80, indicating a potential target of $25, which is a significant psychological milestone and a previous level of support [2] - Barchart identified SentinelOne as a J-Hook opportunity, suggesting a potential breakout following a see-saw price action [2] Group 3: Trading Strategy - Investors are advised to consider long-expiry call options for SentinelOne, specifically the 2025 Jan. 17 $25 call, as the price action suggests $25 is a logical target for bullish traders [3] - The main risk factor is the technical support at $22, which could be a fallback point for the stock [3] - The potential loss of market share by CrowdStrike may serve as a fundamental driver for SentinelOne's stock to recover to previous highs [3]