Contraction before a breakout?I see a cup and a handle. Also the value Is fair. In a bull market this can explode fast. Add to this a contraction of price action on the weekly chart and a reduction in volume so no sellers. That's a strong signal.
S trade ideas
S - SentinelOne, Inc.MT Newswires
SentinelOne Cybersecurity Applications Receive FedRAMP Approval
Sep 12, 202417:42 GMT+3
SentinelOne said Thursday its Singularity Platform and Data Lake cybersecurity applications have received the federal government's highest ranking for protecting sensitive, unclassified data.
High Impact Level authorization by the Federal Risk and Authorization Management Program (FedRAMP) indicates the SentinelOne's software-as-a-service platforms meet compliance and safety standards for use on federal, public sector, defense industrial base and critical infrastructure facilities throughout the US.
SentinelOne shares were climbing 2% in recent mid-morning trading.
Undervalued cybersecurity stockShare price has recently formed a clear rising channel of late, currently trading at the bottom of the channel.
Revenue is growing at an exponential rate and they are projected to start making profits soon.
Motley Fool has some great recent articles on this company, take a look for yourself.
SentinelOne (S) AnalysisCompany Overview: SentinelOne is preparing to release its second-quarter fiscal 2025 results on August 27. The company, known for its cybersecurity solutions, is poised to deliver solid financial performance, driven by consistent growth and strong earnings surprises.
Key Highlights:
Revenue Expectations: SentinelOne NYSE:S anticipates total revenues of $197 million for Q2, aligning with the Zacks Consensus Estimate. This figure represents a significant 31.84% growth compared to the same quarter last year.
Earnings Performance: The consensus estimate for the company’s loss per share has remained steady at 1 cent, an improvement from the 8 cents per share loss reported in the year-ago period. This steady estimate reflects the company's efforts to improve profitability.
Historical Earnings Surprises: SentinelOne has a strong track record of exceeding earnings expectations, with an average earnings surprise of 64.79% over the past four quarters. This track record highlights the company's ability to outperform market forecasts consistently.
Technical Outlook: Given the company's strong performance history and the current technical setup, the stock is positioned well for potential growth.
Investment Outlook: Bullish Outlook: We are bullish on S if it holds above the $22.00-$22.75 range. Upside Potential: The upside target for SentinelOne is set at $27.00-$28.00, supported by the company’s robust growth prospects and positive earnings track record.
🏅 SentinelOne—poised for growth with strong earnings performance and bullish technicals! #S #Cybersecurity 🚀📈
S SentinelOne Options Ahead of EarningsIf you haven`t bought S before the previous earnings:
Now analyzing the options chain and the chart patterns of S SentinelOne prior to the earnings report this week,
I would consider purchasing the 27usd strike price Calls with
an expiration date of 2024-11-15,
for a premium of approximately $2.07.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
$S Selling Aug30 21 Puts w Yearly Anchored VWAP and POC SupportThis is an earnings play, but premiums are decent at $21 and we have yearly VWAP and POC as support with some room. At best we can get a test and break of upper value, or a pull back to VWAP and POC.
SentinelOne Gains as CrowdStrike Faces Software Update IssuesSentinelOne, Inc. experienced a boost in stock value following a problematic software update by its competitor, CrowdStrike Holdings Inc., which disrupted Microsoft Windows operating systems. The failed patch affected approximately 1% of Windows devices, translating to around 8.5 million units globally. Many of these devices belong to large, mission-critical service providers that rely on CrowdStrike's cybersecurity solutions.
This incident has led some investors to anticipate a potential increase in SentinelOne's market share, as organisations affected by the glitch might consider switching to alternative cybersecurity providers. The positive shift in SentinelOne's stock reflects investor confidence in the company's ability to capitalise on CrowdStrike's misstep.
Technical analysis of SentinelOne, Inc. (NYSE: S)
Reviewing the stock performance of SentinelOne for potential trading opportunities:
Timeframe : Daily (D1)
Current trend : the stock is currently in a global uptrend
Resistance level : previously at 22.25 USD, now serving as new support after being surpassed
Support level : established at 20.05 USD.
Potential downtrend target : should the stock revert to a downtrend, a potential target could be set at 17.25 USD
Short-term target : if the uptrend persists and further resistance is breached, a short-term target could be 29.10 USD
Medium-term target : with continued upward momentum, the price might aim for 36.00 USD
Investors should closely monitor the developments surrounding SentinelOne's competitive positioning in the cybersecurity market. The current scenario offers a strategic advantage that could significantly influence SentinelOne's operational performance and stock valuation.
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Make it or break it moment for $SWith the spectacular fall of NASDAQ:CRWD last week I expect to be a decisive week for SentinelOne.
Scenario nr 1
Break out of the correction or for Bill O'Neill followers break out of the base.
Supporting evidence:
1. Fundamental. Better than expected earnings
The biggest competitor is having a terrible day
2. Rising MACD histogram on the weekly
3. MACD lines almost crossing
4. Force Index getting positive
5. Getting The Positive Direction Line above the Negative Directional Line will mean that the bullish traders dominate the market.
Scenario nr 2
Break out is not ready yet and we go back in the correction range evidenced on my graph by the parallel channel
Why?
Waiting for earnings confirmation?
Force Index above 0 is minor at this point a follow-up week will break the trend.
The stock needs to deal with the overhang supply. First hurdle, people who bought around the $22 price.
S LongSentinelOne (S) shows a bullish setup on the 4-hour chart. The stock has recently broken above a downtrend line and is now testing previous resistance around $22. The price action displays higher lows and higher highs, indicating a potential trend reversal. A green uptrend line supports the recent price action, and the stock has crossed above both the 50 and 200-period moving averages. The breakout is accompanied by increased volume, suggesting genuine buying interest. Key resistance levels are visible at $21.95 and $22.21, with support at $19.70 and $19.33. The entry is placed at the current price level, with a stop below the recent swing low and uptrend line. The profit target is set near the next significant resistance level. The risk-reward ratio is favorable, and the overall technical picture supports a bullish bias.
{
"direction": "Long",
"symbol": "S",
"interval": "4h",
"entry": 21.8,
"stop": 20.5,
"profit": 23.8,
"risk": 130,
"reward": 200,
"quantity": 100,
"score": 7
}
SBought S after it fell on double beat earnings release. Completed a deep zigzag after a clear impulse. Part of my long-term portfolio.
5/30/24 - $s - bot $17 AH. like the entry here. great biz.5/30/24 - vrockstar - NYSE:S - starting my position here at $17 after hours. hard to say what's buying mgn of safety here, but i'll make a few points:
1) growing 35-40%, same as industry leaders but spending way less
2) better tech, Tomer confident and humble communicating this; have heard it from those in industry as well. buy tech in enterprise, not necessarily in consumer, but it matters in B2B
3) net cash, 5.5x next year EV. half as cheap as avg. of NASDAQ:ZS , NASDAQ:CYBR , NASDAQ:PANW etc. if they were a yester-year product i'd say that was expensive. but these guys are the marginal winners that wall street doesn't see yet
4) 2H pipeline strong, but mgmt communicating conservatively. compare this to $zs. NYSE:S has done a great job beating #s, so it's not like they're promising low #s on missing. what mgmt is comm'ing has to do w/ rebuilding product team esp emerging product ramp. they're incentivized (this is ~40% of their team)
5) what's downside? 4-5x sales? w/ net cash, that's basically 20% most here. that's $3 off the $17 it will open at so $14? at $15 i'd probably already be pretty large. the position i started here wasn't small - 2% to go and would take it to 3-4% at $16, 4-5% at $15 and we'll see thereafter (if/how/why/when etc.)
gl to all. lmk if you see it otherwise.
Bullish shark Idea - Sentinel OneBullish shark pattern popping up on Sentinel One. Could be the bottom.
$S Potential H2 2024 Breakout After Extended Basing Period$S:1D
HH VWAP (highest high): yellow: 22.87
LL VWAP (lowest low): pink: 19.74
Major Fibs: left side
Minor Fibs: right side
After an extended, multi-year basing period NYSE:S appears ready to breakout to the upside over the remainder of 2024. That being said, the road to a breakout could be a bit rocky in the near term.
The stock has suffered a 29% peak to trough decline from YTD peak of 30.76 achieved on February 14, 2024. More recently, down guidance in mid-March of 2024 has led to a subsequent dip in analyst earnings forecasting for Q1, 2024, essentially having an attenuating effect on the potential for upside impulsivity to emerge.
I view the analyst 'down forecast' for Q1 2024 as 'isolated' given the steady increase in future earnings forecasting from Q2 2024 onward. Current quarterly earnings forecasts includes the potential for a milestone 'first' positive earnings print for Q3 2024 which could serve as the catalyst for a move to the upside. Increasing quarterly revenue forecasts appear undaunted by the potential for a down earnings quarter in Q1 of 2024 and continue to move 'up and to the right'. (see below)
Steadily increasing quarterly revenue streams are often indicative of a company expanding market share within their industry but can be the product of an expanding market within the industry itself resulting in a particular company increasing their revenues without increasing their actual market share. In order to meaningfully expand market share NYSE:S would need to begin taking share from its industry competitors in a more accelerated and aggressive manner.
Signal is currently resting slightly above the HH VWAP (yellow) at 22.87 and remains above the RET 0.5 (20.52) from early November 2023 lows but has yet to reach an 'oversold' state of 30 or below on the 1D RSI which could, theoretically, be achieved with a downward move to below the LL VWAP (pink) at 19.74. Volume flows as measured by OBV (bottom indicator) have fallen below the 50 day simple moving average but remain positive and seem to be finding potential support slightly above prior resistance which peaked in early June of 2023.
Upside target to reach before EOY 2024, is the RET 1.382 (35.43) level which is roughly 51.99% above the current price of 23.31. Trade would invalidate with a 3 bar, 'body close below the line' of the RET 0.236 (17.43) level on the 1D time frame.
Chart is in log scale and Fib levels are based on log scale.
NOT FINANCIAL ADVICE
SentinelOne's Stock Down 14% on Earnings MissSentinelOne's stock (NYSE: NYSE:S ) fell 14% following its mixed first-quarter financial results, which reported quarterly losses of 23 cents per share, significantly missing the analyst consensus estimate of losses of 5 cents by 360%. However, the company posted quarterly sales of $186.4 million, surpassing the analyst consensus estimate of $181.09 million by 2.93%.
Despite the bad earnings number, SentinelOne (NYSE: NYSE:S ) had some positive news to report as well. Sales that exceeded expectations actually soared 40% year over year. Gross profit margins jumped 5 full percentage points to 73%, and operating profit margins weren't exactly "profitable," but their negativity was cut in half, to 43%.
SentinelOne's (NYSE: NYSE:S ) first quarter of positive free cash flow (FCF) generated real cash profits of $41.1 million worth in just the first quarter, implying full-year FCF might be as high as $160 million. This makes SentinelOne (NYSE: NYSE:S ) a buy if the company can keep growing revenue at 40% and increase FCF at a similar pace.
On a $5.2 billion market capitalization, this implies the stock could currently cost as little as 32 times annual FCF, which seems a good price if the company can keep growing revenue at 40% and increase FCF at a similar pace. However, other investors might have been spooked by the company's forecast. Management said that second-quarter revenue will only be about $197 million, so better than the first quarter but slightly below Wall Street estimates. Full-year guidance came in short of Street expectations, with SentinelOne (NYSE: NYSE:S ) also noting that its GAAP earnings will remain negative all year long.
SentinelOne (NYSE: NYSE:S ) is technically oversold with a Relative Strength Index (RSI) of 21.31. The daily price chart depicts a down gap which occurred as a result of the earnings miss. But, investors are trying to fill in the downward gap formed.
Cyber Security NarrativeAs we all know increased chances for cyber warfare and attacks are likely, with advancements in the modern technological age, companies and sovereign states will look to fortify their databases and this chart looks absolutely prime.
Double Bottom on SentinelOne (S)In my analysis, SentinelOne (S) presents a compelling buying opportunity at the moment. The RSI divergence, coupled with the price aligning with the trendline (200 EMA) and support level, indicates a favorable setup.
Additionally, the formation of a double bottom suggests that buyers have regained control. Reflecting on the market since May 2022, we observe a potential reverse head and shoulders formation, with the attainment of the $30.75 price target potentially completing the right shoulder.
I've chosen to take a long position on the stock, implementing an 8% stop loss and targeting a 36% increase, yielding a risk-to-reward ratio of 4.5.
I plan to reassess once the price target is achieved, as I'm interested in observing whether the stock can break resistance and establish the reverse head and shoulders formation.
S SentinelOne Options Ahead of EarningsIf you haven`t bought S prior to the previous earnings:
Then analyzing the options chain and the chart patterns of S SentinelOne prior to the earnings report this week,
I would consider purchasing the 35usd strike price Calls with
an expiration date of 2025-1-17,
for a premium of approximately $3.80.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
SentinelOne good long playSentinelOne seems like a great stock through earnings this month. With cross ups on the RSI and MACD the catalyst of earnings and the recent interest in the cyber security field as a whole i could see it crossing the resistance at 30.00. For sure a long term interest with the company getting closer to profitability every quarter and the long term outlook for cyber security overall.
not a financial analyst
🔒🚀 SentinelOne (S) Analysis - Cybersecurity Powerhouse! 🌐🤖📈 Technical Overview:
SentinelOne (S): Expanding beyond endpoint protection, launching security products for identity, cloud, and data lakes.
Strong growth in sales for cloud and data with triple-digit YoY growth.
Introduction of Purple AI seen as a positive development.
Improving operating margins and positive outlook for free cash flow.
📊 Trade Strategy:
Trade Opportunity: Bullish sentiment.
Entry: Above the $23.00-$24.00 range.
Upside Target: $35.00-$37.00.
🚨 Note: Market dynamics may influence outcomes.
Securing the future! 🔐🌐 #SentinelOne #TradeAnalysis #StockMarket 🚀💻
S Breaking Resistance After 20 EMA RetestS is looking to breakout after a really nice PEG in December. Hit resistance just below $28 and then consolidated down. 20 EMA now acting as support and it looks ready to explode higher.
Back to support?recently broke out of a very consistent wedge formation.
Normally, when we see these breakouts - there is a pullback back to support. I think we will touch support before coming back up. Buy entry around 20$
