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Wall Street’s hidden gem: The stock is ready to outshine the market in 2024

Wall Street's hidden gem: The stock is ready to outshine the market in 2024
Bogdan Stojkov

Investors are always on the hunt for the next big thing, and one company has quietly been making waves. SentinelOne (NYSE: S) is a cybersecurity provider that’s steadily climbing, and in 2024, it’s looking to outshine the market with its innovative solutions and promising growth trajectory. Here’s all you should know about it.

A rising star in cybersecurity

SentinelOne is a leading cybersecurity company specializing in autonomous endpoint protection powered by AI and machine learning. The platform offers real-time prevention, detection, and response capabilities to defend against malware, ransomware, and zero-day exploits, ensuring proactive defense and rapid threat mitigation for organizations worldwide.

SentinelOne operates at the forefront of cybersecurity, leveraging AI-powered endpoint protection and cloud security solutions. Despite its recent success, with a staggering 66.35% rise in stock value over the last year, SentinelOne stock still trades significantly below its IPO price, presenting an enticing opportunity for investors.

At the time of writing, Realty Income stock price stands at $52.31, reflecting a notable decline of $0.18 or 0.34% year-to-date.

Outpacing the competition

SentinelOne faces fierce competition from established rivals. However, its unique AI capabilities and unified platform have propelled it ahead of the pack. While the forecast for the global cybersecurity market suggests that it will grow at a CAGR of 12.3% until 2030, SentinelOne’s growth has outpaced both its competitors and the market as a whole.

Innovative defense mechanisms

SentinelOne’s innovative approach to cybersecurity sets it apart. Namely, by employing a fully autonomous system, the company effectively thwarts attacks in real time, offering a compelling alternative to traditional security solutions.

Such an approach resonates with customers, evidenced by a 28% year-over-year increase in its customer base, reaching an impressive 11,500 customers in Q3 FY2024.

Impressive financial performance

Financially, SentinelOne stock is on solid ground. In Q3 FY2024, SentinelOne earnings reported $164.2 million in revenue, marking a substantial 42% increase year-over-year. Management projects full-year revenue for FY2024 to reach $616 million, reflecting an impressive 46% year-over-year growth rate.

Furthermore, while profitability has yet to be attained, SentinelOne has made significant strides. Its GAAP gross margin is 73%, which is up 9% from the previous year.

Is SentinelOne profitable?

Despite not currently being profitable, SentinelOne’s financials paint a promising picture. With operating expenses rising by only 13% year-over-year, trailing behind its robust revenue growth, the company is steadily moving toward profitability. Such a balance between revenue growth and expense management positions SentinelOne for sustained success in the years to come.

Expanding horizons: SentinelOne acquires PingSafe

In February 2024, SentinelOne completed its acquisition of PingSafe, a CNAPP solution that will bolster its cloud security capabilities. By integrating PingSafe into its Singularity Platform, SentinelOne aims to offer a unified AI-powered platform with comprehensive cloud security features.

This strategic move not only enhances SentinelOne’s offerings but also strengthens its competitive edge in the cybersecurity landscape.

Is SentinelOne a good stock to buy?

As we embark on the journey into 2024, SentinelOne stands out with its potential in the cybersecurity sector. The thing is—with its innovative technologies, robust financial performance, and strategic acquisitions, the company is looking to soar to new heights.

All in all, for investors seeking growth opportunities, SentinelOne represents a hidden gem on Wall Street, ready to shine in the year ahead.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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