Wall Street Is Sleeping on This $13 Stock -- and That's Your Opportunity
Key Points
SentinelOne’s stock trades down over 30% in the past year, despite reaching the $1 billion revenue milestone in fiscal 2026.
The company’s AI-native products are gaining traction.
The stock trades at just 4.8 times sales, well below its historical average.
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Shares of cybersecurity player SentinelOne (NYSE: S) have fallen over 32% in the past year and now hover around the $13 level. The pullback reflects investor concerns about conservative near-term guidance, increased competition from larger cybersecurity players, and rising fears that artificial intelligence (AI) could disrupt traditional software-as-a-service (SaaS) models.
However, based on the company's recent earnings results, Wall Street seems to be underestimating the stock's long-term growth potential.
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AI is driving growth at SentinelOne
SentinelOne crossed the $1 billion revenue milestone in fiscal 2026 (ending Jan. 31, 2026), with revenue growing 22% year over year. The company also turned operationally profitable, reporting an operating margin of 3.5% in fiscal 2026. While profitability remains modest at this stage, the business is clearly moving in the right direction. SentinelOne's growth is increasingly driven by its AI–native security platform, targeting a market opportunity estimated to exceed $100 billion.
That momentum is visible in customer behavior. In fiscal 2026, customers using three or more of SentinelOne's solutions jumped to 65%, up from 39% a year ago. This highlights the company's success in its cross-selling and upselling efforts. Large enterprise adoption is also accelerating, with the number of customers generating annual recurring revenue (ARR) of $1 million or more growing by 20% year over year to 153 at the end of the fourth quarter.
SentinelOne also benefits from the increasing adoption of AI security offerings. Purple AI achieved an attach rate (bundled with broader security solutions) of over 50% on licenses sold in Q4, with strong traction across both new and existing customers.
Despite the improving fundamentals, the stock is trading at just around 4.8 times sales, well below its historical five-year average price-to-sales (P/S) multiple of 13.2x. Analysts have also set a median consensus target price of $18, while high-end estimates reach $26. This implies that Wall Street sees solid upside from current levels.
Hence, in a market focused on near-term noise, SentinelOne may prove to be a smart pick for long-term investors.
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Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SentinelOne. The Motley Fool has a disclosure policy.
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