As we venture into the fourth month of 2024, the ongoing stock market rally shows no signs of waning.
Consequently, many stock pickings, particularly in the artificial intelligence sector, are becoming pricier to acquire.
Nevertheless, given their recent downturns and price reversals in the preceding year, there exists a multitude of options for stock traders that hold the potential for profitable long-term investments.
Picks for you
Conducting an analysis encompassing fundamentals, technicals, and past performance, Finbold has identified two stocks priced under $100 to buy this week.
SentinelOne (NYSE: S)
Cloud computing platforms have enabled businesses to expand their online presence globally and optimize operations, but they’re also vulnerable to cyberattacks due to their increased digital footprint.
SentinelOne (NYSE: S) addresses this challenge with AI-powered cybersecurity solutions. Its Singularity platform uses AI to proactively detect and neutralize threats, while Storyline technology autonomously summarizes incidents, reducing the time spent on manual investigations.
Despite incurring losses due to heavy investment in growth, SentinelOne reported a record-high revenue of $621 million in fiscal 2024, marking a 47% year-over-year increase and surpassing management’s forecast.
With a current market cap of $7.2 billion, its stock trades at a relatively low price-to-sales (P/S) ratio of 11.6.
SentinelOne stock price chart
The current price of S stock stands at $22.55, reflecting a 2.00% decline, following a 0.35% loss over the past five trading sessions.
Technical indicators suggest that the stock’s movement in the next few days may remain sideways to slightly bearish. Despite signs of oversold conditions and potential momentum reversal, the overall trend remains bearish, supported by decreasing moving averages and negative volume indicators.
DigitalOcean (NYSE: DOCN)
DigitalOcean (NYSE: DOCN) is carving out its niche by catering to small and mid-size businesses. Unlike market leaders focused on large contracts, DigitalOcean prioritizes affordable and transparent pricing, offering a range of cloud solutions from basic data storage to advanced software development tools and video streaming.
DigitalOcean expanded its offerings through a strategic $111 million acquisition of Paperspace. This acquisition bolsters DigitalOcean’s suite with AI solutions typically reserved for larger enterprises.
Paperspace’s specialized data centers, powered by industry-leading chips like Nvidia’s (NASDAQ: NVDA) H100 GPU, offer AI processing at prices up to 70% cheaper than major cloud providers.
Despite generating $693 million in total revenue in 2023, DigitalOcean sees vast potential in the cloud industry, projected to reach $114 billion this year. The addition of AI services could further expand this market into the trillions of dollars over the long term.
DigitalOcean stock price chart
Like the previous selection, DOCN stock has faced challenges recently, experiencing a daily chart loss of 2.49%, bringing its value to $37.22. This adds to the 5.22% losses over the past five trading sessions.
Analysis of trend, momentum, volatility, and volume indicators suggests that DOCN may continue its short-term bearish trend in the coming days. The absence of clear momentum and the presence of selling pressure indicate a potential further decline in the stock price.
Despite recent setbacks, these two stocks offer significant value at their current price when you take into account their untapped potential and the markets they operate in.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
