Overlooked growth stocks could be the biggest gainers during the current bull market. Many high-profile companies have enjoyed surging valuations as they recovered from the 2022 market correction. Some promising businesses have lagged their peers, and one cybersecurity stock in particular has attractive upside potential.
An under-the-radar cybersecurity stock
SentinelOne (NYSE: S) provides endpoint protection software and services to business customers. Its products are used to monitor and eliminate malicious software threats to devices and servers that are connected to an organization’s network. The number of cyberattacks is increasing over time, and endpoints are one of the most common entry points to enterprise networks.
It’s easy to see why there’s serious demand for endpoint security services and that demand is great news for SentinelOne, but taking advantage of that demand is another story. This portion of the cybersecurity industry is highly competitive, with large and capable providers including CrowdStrike, Microsoft, Palo Alto Networks, and Fortinet. The crowded space creates a lot of mouths to feed, even if there’s a large and rapidly expanding pie to divide among the crowd.
SentinelOne is trying to differentiate itself by leaning fully into artificial intelligence (AI). Its platform boasts automated monitoring and remediation capabilities. That should improve the efficacy of its threat detection, and it also reduces the burden on human employees to manage those processes. It’s a shrewd move to stand out in the crowd, though it would be naive to doubt competitors’ AI capabilities — building automation into the platform will hardly be a unique value proposition. Still, SentinelOne finds itself getting high marks from Gartner and its customers. The company’s clearly built a high-quality product.
SentinelOne is also aiming to create a competitive advantage by forming distribution partnerships with managed security service providers (MSSPs). MSSPs allow companies to outsource cybersecurity functions, which tends to be valuable for smaller-scale businesses…
..
