In the aftermath of a significant sell-off in the technology sector, two companies have emerged as compelling investment opportunities: SentinelOne and Sirius XM. Both firms exhibit strong fundamentals and appear undervalued compared to their long-term growth potential, suggesting that now could be an ideal time for retail investors to consider entering positions with a modest investment, such as $1,000.
SentinelOne
SentinelOne has shown promising performance metrics, boasting over $1 billion in annual recurring revenue. The company’s recent financial shift to positive non-GAAP net income and free cash flow highlights its transitioning stability. Despite these positive indicators, the stock has experienced a downturn, plummeting approximately 43% over the past year and trading at a mere 4.7 times its sales. This valuation starkly contrasts with prominent competitors in the cybersecurity domain, such as Palo Alto Networks, CrowdStrike, and Zscaler, which have price-to-sales (P/S) multiples ranging from approximately 9 to over 22.
Key data surrounding SentinelOne includes:
- Current Price: $12.97
- Market Cap: $4.4 billion
- Gross Margin: 74.45%
- Volume: 9.7 million shares
While market sentiment seems pessimistic, SentinelOne’s revenue visibility remains strong. As of the end of the third quarter of fiscal 2025, the company reported a remaining performance obligation of about $1.3 billion. Notably, the company’s diversification efforts beyond endpoint security are paying off, with a significant portion of third-quarter bookings coming from non-endpoint products. This includes offerings like Singularity AI SIEM, which assists in threat monitoring and management, as well as Purple AI—a tool designed to automate investigative tasks using natural language. The latter has reportedly garnered substantial interest from customers, indicating strong usage trends and potential for future growth.
Sirius XM
On the other side, Sirius XM stands out as a leading player in the subscription-based audio entertainment market in North America. The company has a unique advantage in that its satellite radios are frequently pre-installed in new vehicles sold in the U.S., creating a direct pathway to reach listeners. Additionally, Sirius XM operates Pandora, an ad-supported streaming service, allowing it to diversify its revenue streams further.
Key metrics for Sirius XM reveal:
- Current Price: $21.06
- Market Cap: $7.1 billion
- Gross Margin: 40.65%
- Dividend Yield: 5.13%
Sirius XM currently boasts about 33 million subscribers, extending its reach to a total audience of approximately 170 million. The company has also shown resilience in generating free cash flow, totaling $1.26 billion in 2025—outpacing its prior guidance by over $100 million. Looking ahead, Sirius XM anticipates increasing its free cash flow to $1.35 billion in 2026 and $1.5 billion in 2027. Such financial stability is pivotal in navigating volatile market conditions.
Despite these strong fundamentals, Sirius XM’s stock trades at just 0.8 times sales. Coupled with a healthy dividend yield of 5.1%, the stock is perceived as undervalued, presenting an attractive opportunity for investors in 2026.
In conclusion, both SentinelOne and Sirius XM offer enticing prospects for long-term investors, characterized by robust growth trajectories and attractive valuations. With the potential for significant upside, the current market environment may provide a favorable entry point.
