SentinelOne stock price forecast ahead of Q4 earnings: buy or sell?

SentinelOne (NYSE: S) stock price erased some of the losses it has made in the past few days in the pre-market session. It jumped by over 8% as it moved to $27.50. It remains over 10% below its highest point in 2024, meaning that it has moved into a correction.

Blurry outlook for cybersecurity stocks

SentinelOne, a leading player in the cybersecurity industry, has come under pressure in the past few weeks. Most of this weakness started when Palo Alto Network published weak financial results and lowered its forward guidance.

Now, the stock is rebounding after CrowdStrike published strong Q4 numbers. CrowdStrike said that its annual recurring revenues (ARR) jumped by 34% YoY in the last quarter to $3.44 billion. 

The company also boosted its guidance. It expects that it will make between $3.92 billion and $3.98 billion this year. Analysts were expecting that its total revenue for the year would come at about $3.94 billion.

This guidance is important because the company has a long track record of delivering conservative guidance. For example, it has beaten its internal and analysts estimates in the last four straight quarters.

Therefore, SentinelOne stock price is soaring because it is in the same industry as CrowdStrike. As such, analysts believe that the company will also publish strong financial results on March 13th.

In December, SentinelOne published strong results and boosted its forward guidance. Its total revenue in the third quarter came in at $164.1 million, a 42% increase from the same quarter in 2022. Its ARR rose by 43% in the quarter as the number of customers soared to 11,500.

The company expects that its Q4 revenue will be about $164 million, a 34% YoY increase. That figure will bring its annual revenue to $616 million, a 46% increase. Analysts, on the other hand, believe that Sentinel’s guidance was conservative. They expect it to move to $169.4 million. 

SentinelOne is not the only cybersecurity stock that is soaring in the pre-market session. Okta rose by 1.5% while Zscaler soared by over 3.3%. Palo Alto Networks, the embattled cybersecurity giant was up by 3.70%.

SentinelOne stock price forecast

S chart by TradingView

Turning to the 1D chart above, we see that the S stock price surged to a high of $30.71 on February 14th of this year. This was an important level since it was a few points above the crucial resistance point at $30, its highest point in August 2022.

The stock has moved a few points below the middle line of the Bollinger Bands while volume has remained under pressure. Data by Yahoo Finance shows that the average volume of the stock has been 6.1 million. 

SentinelOne stock has also formed an ascending channel, which is shown in green. Therefore, I suspect that it will hold steady ahead of its earnings, which are set for Wednesday next week. The key support and resistance points to watch will be at $25 and $30.