SentinelOne (NYSE: S) stock has struggled for years as slowing growth, fierce competition, and, more recently, macroeconomic headwinds and a CFO departure have sapped investor confidence.
However, while concerns surrounding this cybersecurity company are real, the impact on the stock price has become disconnected from reality. The company is slowing but maintains a solid pace, outperforms consensus, and has a robust outlook supported not only by industry trends but also by the company’s utility to clients.
SentinelOne Stock Can Rise by Triple Digits
The valuation metrics set the stage for this stock to triple in value in the near-to-mid-term and then double again over the longer term.
SentinelOne’s price-to-earnings (P/E) multiple of 77X in early January puts a premium on the stock relative to the S&P 500, but is 30 handles below its leading independent competitor CrowdStrike (NASDAQ: CRWD) and fails to price in the long-term outlook. Crowdstrike's growth has slowed to the low-20% range, and its stock trades at a much higher valuation relative to long-term earnings forecasts.
Revenue is forecasted to sustain a 20% compound annual growth rate (CAGR) over the next five years, then slow to the high teens while margins expand, putting the stock at only 4X its 2035 forecast. The stock could easily triple in price and still not match CRWD’s nearly 14X valuation, a price point at which both stocks still present deep value. If SentinelOne outperforms guidance, which is likely given the industry trends, the value to buy-and-hold investors is deeper than it appears.
Industry competition is fierce, but SentinelOne is well-positioned, and industry-wide growth is expected to be robust. Cybersecurity needs are driven by an ever-increasing number of attacks and the need to secure operations. Digitization and cloud use are expanding globally, with service penetration compounding activity. The forecast for cybersecurity is for a mid-to-high-teens CAGR over the next decade, which will double or even triple in size by 2035, with demand centered on Internet of Things (IoT), identity and access, and cloud security—areas in which SentinelOne excels.
SentinelOne’s AI-powered cybersecurity platform unifies protection across multiple security vectors, giving organizations centralized visibility and control. It secures endpoints and cloud workloads across hybrid and multi-cloud environments, including identity and access control. Its AI and machine learning support real-time detection and response, proactive protection, and automated remediation to limit the impact of incidents.
Analysts and Institutions Accumulated SentinelOne in 2025
Although some late-year bearishness in activity aided SentinelOne's price decline, analysts and institutions accumulated the stock in 2025. The late-year trends included numerous price target reductions and an institutional group that sold on balance; however, the remaining data is bullish.
Institutions own more than 90% of this stock and revealed a high degree of confidence in the first three quarters of last year, accumulating in each quarter at a pace of nearly $1.5 bought for each $1 sold.
Analyst price targets fell throughout the year but slowed in Q4. Despite declining throughout the year, the consensus price target still indicates a 50% upside to the current price for the Moderate Buy-rated stock.
Most fresh price targets are in a tight range around the consensus, with a few outliers. Even low-end targets still present upside opportunity.
The price action is iffy. The market is oversold and extended, trading at a long-term low and resistance target, but it can still fall further.
The question is whether institutions will revert to accumulation at early January levels, which seems likely given the trends and outlook.
In this scenario, downside risk is limited, but still present, while upside potential is ample. Upcoming catalysts include the fiscal Q4 earnings report, scheduled for early March, and the onset of the Q1 earnings reporting season, when strength is expected across the tech industry, specifically among cybersecurity stocks.
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The article "What’s Up With SentinelOne? An Ultra-Deep Value Opportunity" first appeared on MarketBeat.
