Two cybersecurity stocks for growth News ad

Cybersecurity is a broad branch of the computer and technology sector, consisting of many types of companies involved in different aspects of online security. Just as home security can include security cameras and alarm systems, panic rooms and fireproof safes, cybersecurity can include endpoint and event monitoring to back up and protect data. Here are two cybersecurity stocks with different earnings reactions that present buying opportunities now and on deeper pullbacks.

SentinelOne: Protecting Endpoints with AI

From a computing and cybersecurity perspective, endpoints refer to devices that provide access to a network and can send and receive data. Endpoints can range from desktops, laptops and mobile devices to servers and virtual machines. Hackers attack endpoints to gain unauthorized access to the network and its data. SentinelOne Inc. New York Stock Exchange:C specializes in autonomous artificial intelligence (AI)-powered endpoint protection through its Singularity platform. It provides granular endpoint management, allowing administrators to effectively monitor, protect, and manage devices. Its artificial intelligence and machine learning algorithms constantly learn and adapt to evolving cyber threats.

The CrowdStrike Surge That Wasn’t There

SentinelOne was expected to be a major outside benefactor CrowdStrike Holdings Inc. NASDAQ: CRWD incident that occurred in July 2024. A software update released by the company caused a massive Microsoft Company NASDAQ: MSFT The failure of Windows on 8.5 million devices resulted in approximately $5.4 billion in damage, including the shutdown of more than 700 devices. United Airlines Holdings Inc. NASDAQ: UAL flying. The incident sent SentinelOne shares higher in anticipation of a mass exodus of CrowdStrike customers. Unfortunately for SentinelOne, that didn’t happen, at least not in the third quarter.

SentinelOne misses by a penny

For the fiscal third quarter of 2025, SentinelOne reported breakeven earnings per share, missing consensus estimates by a penny. Revenue grew 28.3% YoY to $210.6 million, beating consensus estimates of $209.73 million. Full-year recurring revenue rose 29% YoY to $859.7 million. GAAP gross profit increased 140 bps .p. up to 74.7%. However, operating losses also rose 9.4% YoY to $89.1 million, and R&D expenses rose 34.7% YoY to $70.4 million. There is a possibility that SentinelOne acquired new customers thanks to CrowdStrike. but the transition to their platform may take several quarters before it becomes a reality. The number of customers with ARR greater than $100,000 grew 24% to 1,310. The company ended the quarter with $1.1 billion in cash and investments.

Positive Free Cash Flow Leads SentinelOne to Issue Growth Forecast

The company delivered positive free cash flow for the first time in the last twelve months, prompting SentinelOne to raise its revenue growth forecast to 32% YoY for fiscal 2025.

SentinelOne issued fourth-quarter revenue guidance of $222 million, versus the consensus estimate of $220.63 million.

Forecast revenue for fiscal 2025 is expected to be about $818 million, beating the consensus estimate of $815.65 million. Incidentally, the market responded by selling 13.2% of the stock the next day to close at $24.89. The sell-off continued for several weeks, hitting a low of $21.55, providing bullish investors with an immediate buying opportunity.

Category: Protecting the Data Ecosystem

If SentinelOne is the equivalent of a home surveillance system, then Rubrik company. New York Stock Exchange: RBRK is the equivalent of a powerful bank vault that protects valuables.

The values ​​in this case are data. Rubrik provides end-to-end data protection, management, and immutable backup services through its unique zero-trust architecture.

They specialize in cyber resilience, data archiving, recovery and threat monitoring through their Rubrik Security Cloud platform.

Rubrik is in hypergrowth mode as a newly formed public company

Rubrik recently went public in April 2024, with its shares hitting a low of $28.34 on June 17, 2024. Its recent earnings report for the third quarter of fiscal 2025 stunned investors and analysts, sending shares to a new high of $75.79 before a pullback to fill the $62.06 gap. The company reported a third-quarter loss of 21 cents per share, still cutting the consensus estimate by 19 cents. Revenue grew 42.6% YoY to $236.2 million, well above consensus estimates of $217.5 million. Subscription ARR grew 38% YoY to just over $1 billion. Subscription revenue jumped 55 % year over year to $221.5 million. The company ended the quarter with $632 million in cash and short-term investments.

Growth continues with growth forecast

Based on consensus estimates, Rubrik expects fourth-quarter earnings per share to fall to 37 cents from 41 cents, down from a low of 41 cents. Revenue is expected to range from $231.5 million to $233.5 million, versus the consensus estimate of $224.47 million. Full-year fiscal 2025 revenue is expected to range from $860 million to $862 million, up from $834.12 million. Non-GAAP loss per share is expected to range from $1.96 to $1.82. Rubrik collaborated with fleader in all-flash storage Pure Storage Inc. New York Stock Exchange: PSTG offer companies a comprehensive cyber resilience solution consisting of Security Cloud from Rubrik and FlashArrayTM and FlashBlade from Pure Storage.

Cyber ​​resilience drives growth

Rubrik CEO Bipul Sinha said cyber resilience is the number one topic in cybersecurity. Businesses recognize the inevitability of cyber attacks and breaches. The most important thing is the ability to be resistant to attacks, as well as being able to recover quickly. Rubrik claims to provide the fastest cyber recovery for its clients.

CEO Sinha said, “We are the only vendor in the market that combines rapid cyber recovery with data security posture management (DSPM). We believe that DSPM plus cyber recovery is the only way to achieve full cyber resilience. So, enterprises turn to Rubrik as their trusted cyber resilience partner because we can confidently achieve cyber recovery time objectives, or RTOs.” Rubric stock’s pullback to the lower gap-fill level at $54.90 represents a good opportunity for bullish investors.

Before you consider SentinelOne, you’ll want to hear this.

MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts were quietly telling their clients to buy now, before the broader market caught on… and SentinelOne wasn’t on the list.

While SentinelOne currently has a Moderate Buy rating among analysts, the top-rated analysts think these five stocks are Strong Buys.

View five stocks here

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