The Motley Fool believes the coming year will be crucial for SentinelOne.
The Motley Fool has recommended investors take a closer look at the small-cap cybersecurity company SentinelOne, which has struggled with losses in recent years but appears to be turning a corner, reporting its first-ever positive adjusted earnings per share in its fiscal 2025. SentinelOne has strong growth potential, and the next 12 months will be crucial for the company, according to the Motley Fool.
Details
The Motley Fool believes investors should take a closer look at SentinelOne. Over the past year, the stock is down almost 23% due to the company’s grappling with losses. However, the tide seems to have finally turned, according to the Motley Fool. For fiscal-year 2025 (ended January 31), SentinelOne reported a 32% year-over-year increase in revenue to $821.5 million. The Motley Fool also highlights the positive adjusted earnings per share of $0.05, driven by an improving operating margin.
For investors
According to the Motley Fool, the company’s financial improvement is driven by strengthened relationships with recurring large customers and the rollout of additional products. For fiscal-year 2026, SentinelOne’s revenue could exceed $1 billion, according to company CEO Tomer Weingarten.
The Motley Fool also warns of risks: SentinelOne faces stiff competition from players like Microsoft, CrowdStrike, Palo Alto Networks, and Check Point Software Technologies. The outlet notes that while the company’s AI focus was once a key differentiator, with its Singularity platform reportedly being able to detect and prevent cyberattacks at machine speed, its rivals have been quick to roll out similar features. Today, CrowdStrike offers broader cybersecurity scope, while Palo Alto Networks is more profitable, the Motley Fool adds.
All of this is reflected in SentinelOne’s valuation, as the stock is trading at a lower price-to-sales ratio than peers, as the Motley Fool points out.
The outlet views SentinelOne’s outlook with “cautious optimism.” It believes fiscal 2026 will be a make-or-break year for the company, as it must prove its strategy is paying off.
Wall Street recommendations
According to MarketWatch, 28 Wall Street analysts rate the stock a “buy,” while nine have it as a “hold.” Their average target price of $24.80 per share suggests upside of almost 47% versus the last closing price. On Friday, April 4, SentinelOne closed at $16.91 per share.