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SentinelOne Stock: Buy or Sell?

Parkev Tatevosian, CFA•Aug 19, 2026

Summary

Parkev provides an updated analysis of SentinelOne ahead of its quarterly earnings report, noting its strong performance in the cybersecurity sector. Parkev highlights the company's trajectory from $150 million in revenue in 2021 to over $1 billion today, with management forecasting 20% growth and positive operating profitability for fiscal 2027. While Parkev acknowledges that returns on invested capital (ROIC) remain volatile, the overall valuation at a forward P/E of 44 is considered reasonable.

Parkev highlights SentinelOne (S) as a top pick, noting that while it has gained 46% YTD, it has actually underperformed peers like CrowdStrike and Fortinet which have doubled in value. Parkev emphasizes that the proliferation of agentic AI is a major tailwind for the industry.
Parkev calculates a fair value of $29 for the stock using a discounted cash flow model, suggesting over 32% upside from the current $22 price level. Parkev notes the stock is currently trading closer to its 52-week high of $24 than its low of $11.81.
Parkev recommends a specific entry strategy regarding the upcoming August 27 earnings report: buying half of the intended shares before the announcement and the second half after. Parkev suggests this approach to mitigate the risks of missing out on a potential rally while protecting against downside volatility.

Mentioned Stocks

S
Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev reiterates a buy rating based on a $29 fair value calculation, which offers 32% upside from the current price of approximately $22. Parkev notes that the company is transitioning toward positive operating profitability in fiscal 2027 and benefits from the growth of agentic AI, which increases the demand for cybersecurity. Parkev suggests buying half of an intended position before earnings and half after to manage risk.

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