Back to top

Image: Bigstock

SentinelOne (S) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

The latest trading session saw SentinelOne (S - Free Report) ending at $23.04, denoting a -0.3% adjustment from its last day's close. This change lagged the S&P 500's 1.11% gain on the day. At the same time, the Dow added 1.64%, and the tech-heavy Nasdaq gained 1.03%.

Prior to today's trading, shares of the cybersecurity provider had gained 11.43% over the past month. This has outpaced the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 1.16% in that time.

Analysts and investors alike will be keeping a close eye on the performance of SentinelOne in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.01, showcasing an 87.5% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $197 million, indicating a 31.84% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.03 per share and revenue of $811.41 million. These totals would mark changes of +110.71% and +30.63%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SentinelOne. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SentinelOne currently has a Zacks Rank of #3 (Hold).

In terms of valuation, SentinelOne is currently trading at a Forward P/E ratio of 888.85. This valuation marks a premium compared to its industry's average Forward P/E of 28.04.

It is also worth noting that S currently has a PEG ratio of 16.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. S's industry had an average PEG ratio of 3.21 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


SentinelOne, Inc. (S) - free report >>

Published in