1 No-Brainer Artificial Intelligence (AI) Stock Down 76% to Buy Hand Over Fist, According to Wall Street

Core Viewpoint - SentinelOne's stock is currently undervalued compared to its competitors in the cybersecurity sector, with a significant potential for growth as indicated by analyst ratings and recent performance metrics [2][12]. Company Overview - SentinelOne has developed a cybersecurity platform called Singularity, which utilizes artificial intelligence to autonomously identify and neutralize threats across various enterprise environments [1]. - The company has seen a 76% decline in stock price from its 2021 peak, but analysts are optimistic about its current valuation [2]. Financial Performance - In the second quarter of fiscal 2026, SentinelOne generated $242.2 million in revenue, reflecting a 22% increase year-over-year, driven by a 23% rise in enterprises with annual contracts valued at over $100,000 [8][9]. - The company has raised its full-year revenue forecast for fiscal 2026 from $998.5 million to $1 billion at the midpoint of guidance [9]. Product Development - SentinelOne launched a new subscription model called Flex, allowing customers to adjust their deployments without needing new contracts, which could enhance customer spending over time [10]. - The upgraded virtual assistant, now named Purple AI Athena, employs advanced reasoning to identify and remediate threats, aiming to reduce the need for human intervention [6]. Market Position - SentinelOne's stock is trading at a price-to-sales (P/S) ratio of 6.2, making it more attractive compared to peers like CrowdStrike, Palo Alto Networks, and Zscaler [13]. - Despite being the smallest in terms of market capitalization and revenue among its competitors, SentinelOne is growing faster, with a 22% revenue growth compared to 21% for CrowdStrike and Zscaler, and 16% for Palo Alto Networks [15]. Analyst Sentiment - Among 38 analysts covering SentinelOne, 22 have rated it a buy, with an average price target of $23.65, suggesting a potential upside of 34% over the next 12 to 18 months [12]. - The highest target of $30 indicates a potential upside of 70%, reinforcing the bullish sentiment surrounding the stock [12].