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

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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)

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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.

SentinelOne Rides on a Rich Partner Base, Strong Liquidity

SentinelOne’s partner base, which includes Alphabet, Lenovo, Amazon and ServiceNow, is helping it win customers. The company has added support for third-party solutions, including Zscaler, Okta, Palo Alto Networks, Fortinet, Microsoft and others.

Singularity Cloud Workload Security for Serverless Containers provides real-time, AI-powered protection for containerized workloads running on Amazon Web Service Fargate for Amazon ECS and Amazon EKS. The company has deepened its integration with Amazon Web Service, notably Purple AI becoming available through Amazon Bedrock, which expanded SentinelOne's capabilities to assist organizations in securing GenAI applications. 

The SentinelOne App seamlessly syncs threats into ServiceNow Incident Response for security operations and incident response.

SentinelOne’s Earnings Estimate Revision Show Mixed Trends

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at 18 cents per share, unchanged over the past 30 days compared with fiscal 2025’s reported figure of 5 cents per share.

The Zacks Consensus Estimate for the first quarter of fiscal 2026 earnings is pegged at 2 cents per share, down by a penny over the past 30 days.

SentinelOne’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, the average surprise being 125.00%.
 

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

SentinelOne Shares: Buy or Hold?

SentinelOne’s strong portfolio, which leverages AI and a strong partner base, is a positive. 

However, S shares are trading below the 50-day and 200-day moving averages, indicating a bearish trend.

S Shares Trade Below 50-Day & 200-Day SMAs

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However, challenging macroeconomic conditions and a stretched valuation make the stock risky.

SentinelOne currently has a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable time to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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SentinelOne, Inc. (S) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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