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SentinelOne (S) Up 16% in a Month: How Should You Play the Stock?
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SentinelOne’s (S - Free Report) shares have gained 16.2% in the past month. It is benefiting from the continued adoption of its AI-powered security solutions.
In the first quarter of fiscal 2025, revenues jumped 40% year over year to $186 million driven by expansion in clientele. Singularity Data Lake was its fastest-growing solution (up triple-digits), followed by Cloud, Identity and others.
Annualized Recurring Revenue (ARR) grew 35% year over year to $762 million in the fiscal first quarter. Customers with more than $100,000 in ARR grew 30% year over year to 1,193. ARR per customer increased double-digits year over year, driven by strong platform adoption and success with larger enterprises.
Innovation & Strong Partner Base Aid Prospects
SentinelOne is riding on an innovative portfolio. Its expanding partner base, which includes the likes of Amazon (AMZN - Free Report) and ServiceNow (NOW - Free Report) , has been a key catalyst.
SentinelOne, Inc. Price, Consensus and EPS Surprise
SentinelOne’s latest solution, Singularity Cloud Native Security, which is built on the company’s acquisition of PingSafe in February 2024, expanded its portfolio. It recently announced the availability of the solution in both the United States and Europe.
Singularity Cloud Native Security, which is an agentless cloud native application protection platform, has been rated as the best in the industry by real users as part of the 2024 G2 Summer Grid Reports.
In June, the company launched Singularity Cloud Workload Security for Serverless Containers, providing real-time, AI-powered protection for containerized workloads running on Amazon Web Service Fargate for Amazon ECS and Amazon EKS. The SentinelOne App seamlessly syncs threats into ServiceNow Incident Response for security operations and incident response.
Further bolstering its capabilities, SentinelOne partnered with Advantage to integrate PurpleAI into its MDR service, enhancing enterprise cybersecurity with advanced AI-driven threat detection and response capabilities.
The Singularity Platform is enhanced by Purple AI, SentinelOne’s advanced generative AI security analyst. Purple AI significantly accelerates threat hunting and investigations, reduces Mean Time to Response and provides comprehensive end-to-end enterprise security. This integration enables security teams to automate threat detection, triage and investigation processes using natural language translation, summarization and guided hunting capabilities.
Apart from access to SentinelOne’s threat intelligence source, Purple also has access to Google’s trusted and world-leading threat intelligence by Mandiant, which is available on the Singularity platform.
Moreover, through its collaboration with Aon (AON - Free Report) , SentinelOne is expanding its footprint in the cybersecurity space. The collaboration integrates its advanced technology with Aon’s Cyber Quotient Evaluation (CyQu) platform and Stroz Friedberg global Incident Response service, aiming to provide organizations with a robust suite of tools to defend against, detect and respond to cyber incidents proactively.
SentinelOne’s innovative portfolio is winning accolades. It recently emerged as a frontrunner in the MITRE Engenuity’s ATT&CK Evaluations for Managed Security Services Providers.
Strong Liquidity Position
SentinelOne’s strong liquidity position is noteworthy. As of Apr 30, 2024, it had cash, cash equivalents and short-term investments of $1.1 billion and zero debt.
Free cash flow was $33.8 million in the fiscal first quarter.
SentinelOne’s Fiscal 2025 View Strong
For fiscal 2025, SentinelOne expects revenues between $808 million and $815 million, reflecting 31% year-over-year growth over 2023.
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $811.41 million, indicating year-over-year growth of 30.63%. The consensus mark for earnings is pegged at 3 cents per share, up by a penny over the past 60 days. SentinelOne reported a loss of 28 cents per share in the year-ago quarter.
Estimate Revision Positive
Image Source: Zacks Investment Research
The company expects gross margin to be in the 78-79% range for the full year.
Conclusion
SentinelOne’s strong portfolio, which leverages AI and a strong partner base, is positive. The Growth Style Score of A is hard to ignore for investors.
Moreover, the shares are trading above the 50-day moving average, indicating a bullish trend.
SentinelOne Trading Above 50-Day SMA
Image Source: Zacks Investment Research
However, the Value Style Score of F suggests a stretched valuation at this moment. S stock is trading at a premium with a forward 12-month P/S of 7.25X compared with the Zacks IT Services industry’s 7.13X.
P/S Ratio (F12M)
Image Source: Zacks Investment Research
SentinelOne currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock. However, investors who already own the stock might expect the company’s growth prospects to be rewarding over a longer term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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SentinelOne (S) Up 16% in a Month: How Should You Play the Stock?
SentinelOne’s (S - Free Report) shares have gained 16.2% in the past month. It is benefiting from the continued adoption of its AI-powered security solutions.
In the first quarter of fiscal 2025, revenues jumped 40% year over year to $186 million driven by expansion in clientele. Singularity Data Lake was its fastest-growing solution (up triple-digits), followed by Cloud, Identity and others.
Annualized Recurring Revenue (ARR) grew 35% year over year to $762 million in the fiscal first quarter. Customers with more than $100,000 in ARR grew 30% year over year to 1,193. ARR per customer increased double-digits year over year, driven by strong platform adoption and success with larger enterprises.
Innovation & Strong Partner Base Aid Prospects
SentinelOne is riding on an innovative portfolio. Its expanding partner base, which includes the likes of Amazon (AMZN - Free Report) and ServiceNow (NOW - Free Report) , has been a key catalyst.
SentinelOne, Inc. Price, Consensus and EPS Surprise
SentinelOne, Inc. price-consensus-eps-surprise-chart | SentinelOne, Inc. Quote
SentinelOne’s latest solution, Singularity Cloud Native Security, which is built on the company’s acquisition of PingSafe in February 2024, expanded its portfolio. It recently announced the availability of the solution in both the United States and Europe.
Singularity Cloud Native Security, which is an agentless cloud native application protection platform, has been rated as the best in the industry by real users as part of the 2024 G2 Summer Grid Reports.
In June, the company launched Singularity Cloud Workload Security for Serverless Containers, providing real-time, AI-powered protection for containerized workloads running on Amazon Web Service Fargate for Amazon ECS and Amazon EKS. The SentinelOne App seamlessly syncs threats into ServiceNow Incident Response for security operations and incident response.
Further bolstering its capabilities, SentinelOne partnered with Advantage to integrate PurpleAI into its MDR service, enhancing enterprise cybersecurity with advanced AI-driven threat detection and response capabilities.
The Singularity Platform is enhanced by Purple AI, SentinelOne’s advanced generative AI security analyst. Purple AI significantly accelerates threat hunting and investigations, reduces Mean Time to Response and provides comprehensive end-to-end enterprise security. This integration enables security teams to automate threat detection, triage and investigation processes using natural language translation, summarization and guided hunting capabilities.
Apart from access to SentinelOne’s threat intelligence source, Purple also has access to Google’s trusted and world-leading threat intelligence by Mandiant, which is available on the Singularity platform.
Moreover, through its collaboration with Aon (AON - Free Report) , SentinelOne is expanding its footprint in the cybersecurity space. The collaboration integrates its advanced technology with Aon’s Cyber Quotient Evaluation (CyQu) platform and Stroz Friedberg global Incident Response service, aiming to provide organizations with a robust suite of tools to defend against, detect and respond to cyber incidents proactively.
SentinelOne’s innovative portfolio is winning accolades. It recently emerged as a frontrunner in the MITRE Engenuity’s ATT&CK Evaluations for Managed Security Services Providers.
Strong Liquidity Position
SentinelOne’s strong liquidity position is noteworthy. As of Apr 30, 2024, it had cash, cash equivalents and short-term investments of $1.1 billion and zero debt.
Free cash flow was $33.8 million in the fiscal first quarter.
SentinelOne’s Fiscal 2025 View Strong
For fiscal 2025, SentinelOne expects revenues between $808 million and $815 million, reflecting 31% year-over-year growth over 2023.
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $811.41 million, indicating year-over-year growth of 30.63%. The consensus mark for earnings is pegged at 3 cents per share, up by a penny over the past 60 days. SentinelOne reported a loss of 28 cents per share in the year-ago quarter.
Estimate Revision Positive
The company expects gross margin to be in the 78-79% range for the full year.
Conclusion
SentinelOne’s strong portfolio, which leverages AI and a strong partner base, is positive. The Growth Style Score of A is hard to ignore for investors.
Moreover, the shares are trading above the 50-day moving average, indicating a bullish trend.
SentinelOne Trading Above 50-Day SMA
However, the Value Style Score of F suggests a stretched valuation at this moment. S stock is trading at a premium with a forward 12-month P/S of 7.25X compared with the Zacks IT Services industry’s 7.13X.
P/S Ratio (F12M)
SentinelOne currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock. However, investors who already own the stock might expect the company’s growth prospects to be rewarding over a longer term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.