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SentinelOne S shares have declined 9.9% year to date (YTD), underperforming the Zacks Security industry’s appreciation of 10.3% and the broader Zacks Computer & Technology sector’s 5.6% drop.
SentinelOne stock has underperformed industry peers, including Okta OKTA, Fortinet FTNT and CrowdStrike CRWD, over the same timeframe. OKTA, CRWD and FTNT shares have appreciated 45.6%, 10.3% and 7.6%, respectively.
SentinelOne Stock’s Performance
Image Source: Zacks Investment Research
SentinelOne’s shares are currently overvalued, as suggested by the Value Score of F. The stock is trading at a premium with a forward 12-month Price/Sales of 6.19X compared with the broader sector’s 5.88X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
So, what should investors do with the pricey SentinelOne shares? Let’s dig deep to find out.
Innovative Portfolio Aids SentinelOne’s Prospects
SentinelOne provided positive fiscal 2026 revenue guidance, driven by a strong portfolio and rich partner base. It currently expects revenues between $1.007 billion and $1.012 billion, implying 23% year-over-year growth at the midpoint. However, this is slower than the 32% year-over-year growth S reported in fiscal 2025. For the first quarter of fiscal 2026, revenues are expected to be $228 million.
SentinelOne’s long-term growth trajectory remains intact, driven by an innovative portfolio. Its Singularity platform unifies data capabilities and AI-powered security across endpoint, cloud identity as well as third-party integrations, all in one single user interface.
Solutions, including Singularity Endpoint, Singularity Cloud Security, Singularity Data and Purple AI, are helping SentinelOne address a total market worth more than $100 billion. The total Addressable Market for Endpoint Security, Data Analytics, Cloud Security and Generative AI Security is currently pegged at $17 billion, $31 billion, $12 billion and $3 billion, respectively, which offers significant growth opportunities for SentinelOne.
The Singularity platform is enhanced by Purple AI, SentinelOne’s advanced Generative AI (GenAI) security analyst. Purple AI significantly accelerates threat hunting and investigations, reduces Mean Time to Response and provides comprehensive end-to-end enterprise security. Purple AI suite has evolved to be the company’s fastest-growing solution.
SentinelOne’s innovative portfolio is winning accolades. It emerged as a frontrunner in the 2024 MITRE ATT&CK Evaluations: Enterprise with the Singularity platforms achieving 100% detection and zero detection delays in the marquee third-party evaluation, detecting 80 out of 80 attacks in the simulation across every stage.
Gartner’s 2024 Magic Quadrant for Endpoint Protection Platforms puts SentinelOne in the Leaders Quadrant along with CrowdStrike and Microsoft.