SentinelOne (S) Beats Stock Market Upswing: What Investors Need to Know
The latest trading session saw SentinelOne (S) ending at $26.01, denoting a +0.85% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 0.8%.
The the stock of cybersecurity provider has risen by 12.23% in the past month, leading the Computer and Technology sector's loss of 0.01% and the S&P 500's loss of 0.97%.
The investment community will be paying close attention to the earnings performance of SentinelOne in its upcoming release. In that report, analysts expect SentinelOne to post earnings of $0.01 per share. This would mark year-over-year growth of 133.33%. Meanwhile, the latest consensus estimate predicts the revenue to be $209.56 million, indicating a 27.65% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.03 per share and a revenue of $815.13 million, representing changes of +110.71% and +31.23%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SentinelOne. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. SentinelOne presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, SentinelOne is currently exchanging hands at a Forward P/E ratio of 810.54. Its industry sports an average Forward P/E of 27.37, so one might conclude that SentinelOne is trading at a premium comparatively.
Investors should also note that S has a PEG ratio of 16.84 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.69.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 41, finds itself in the top 17% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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