SentinelOne (NYSE: S) is a cybersecurity company that creates and markets various services and products to protect organizations from cyber threats. Its security platform, Singularity XDR, protects organizations from ransomware, malware, and others.
$S stock rallied after CrowdStrike and Okta released their most recent earnings report to trade at $19.09 per share. The CrowdStrike fiscal Q3 2024 earnings report, which came out on November 28, 2023, beat investor estimates by double digits. It reported an EPS of $0.82, beating the analysts’ estimate of $0.74 by 10.86%. Okta reported even better numbers. According to its fiscal Q3 2024 earnings report, the company reported an EPS of $0.44, which beat the analysts’ estimate of $0.29 by 50.79%.
Their outlook was more impressive than the figures reported for the quarter. Their outlook figures were better than analysts’ predictions. Consequently, it shows that the sector is performing well, which has positively impacted S stock.
When SentinelOne reported its fiscal Q2 2024 earnings report, it reported a total revenue of $149.42, a rise of 46%. Concurrently, annualized recurring revenue (ARR) had grown to 47%. At the time, it beat analysts’ EPS estimates by 43.78% and revenue estimates by 5.98%.
The release of the earnings report by CrowdStrike and Okta signals that the upcoming earnings report from SentinelOne on December 5, 2023, could also beat expectations. Consequently, the stock was up 7.61% at the close of trading on November 29, 2023. In the past four quarters, SentinelOne has beat analysts’ EPS forecasts 100% of the time.
SentinelOne Stock Forecast
S stock has had a great run in 2023, up 31.02% year-to-date. Following the release of CrowdStrike and Okta earnings reports, the report rose a modest 7.61%. In general, S stock has had a volatile 2023. It has had 31 instances where the stock had price moves greater than 5% in that period.
Its most significant move came at the start of June 2023, when it dropped by over 34% after its Q1 2024 earnings report fell short of analysts’ revenue estimates by -2.36%. In the report, its revenue guidance for Q2 was weak. Additionally, its full-year guidance was also below analysts’ expectations.
Based on past S stock price movements, the recent move signals that investors consider the new data important. However, they do not think it to be something that will change their overall perception of S stock.
Stock analysts have given S stock a moderate buy rating. They have set a high price target of $23 and a low of $16.50. Their average price target for the stock is $18.97, a -0.63% change from the current price.
Should you buy S stock?
SentinelOne has been a highly volatile stock for much of 2023. That has been mainly due to mixed earnings results posted by the company. However, the company has been working to improve its performance, including revamping its partnership with Pax8 to boost its targeting of SMBs with cybersecurity solutions.
Microsoft has recently made a foray into the cybersecurity sector, which could eat into the market share of smaller players in the industry, such as SentinelOne. Consequently, the analysts’ cautious buy rating for S stock is accurate.
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