We recently published a list of 10 Best Cybersecurity Stocks to Invest in Under $20. In this article, we are going to take a look at where SentinelOne, Inc. (NYSE:S) stands against other best cybersecurity stocks to invest in under $20.

The cybersecurity sector is at a tipping point, driven by growing cyber threats, breakthrough technologies such as AI and IoT, and a renewed focus on national security and digital infrastructure. Despite a well-documented talent scarcity and evolving geopolitical concerns, the industry continues to grow rapidly, creating an ideal environment for innovation and investment.

According to Fortune Business Insights, the worldwide cybersecurity industry was valued at $172.24 billion in 2023 and is expected to reach $562.72 billion by 2032, expanding at a CAGR of 14.3%. North America, notably the United States, dominates this environment, driven by the growth of e-commerce platforms, increased digital adoption in industries such as BFSI and healthcare, and greater consumer awareness. Cloud computing, AI, machine learning, and IoT technologies are now at the forefront of current cybersecurity solutions, allowing enterprises to identify and prevent digital breaches in real time.

However, as technology advances, so do the hazards. McKinsey’s November 2024 report underlines the critical need to make AI systems more secure, advising cybersecurity providers to focus on the dual problem of protecting both their own AI models and those used by their clients. Generative AI and third-party integrations provide new attack surfaces, necessitating the use of smarter, more adaptive protection technologies.

The need is further heightened by significant policy developments. According to WIRED, former President Trump slapped punitive tariffs on technology imports, sending shockwaves across the semiconductor and e-commerce sectors. While some tech businesses may profit from increased demand for logistics and supply chain management technologies, others, such as major tech giants, saw their stock prices fall sharply due to concerns about inflation and disrupted trade routes. Tariffs on goods from China and other significant nations may boost consumer prices and limit the supply of critical cybersecurity components, particularly for cloud and data center operators.

In the meantime, firms’ stakes are still rising. Nearly half of American businesses have experienced significant revenue losses as a result of data breaches, according to Arcserve and IBM. In 2024, the average cost of a breach was close to $4.9 million; when events took more than 200 days to identify, the cost increased to $5.5 million. The threat surface is growing due to generative AI, and just 40% of SaaS services are actively monitored for security, further taxing already overworked security teams.

According to Forbes, there is a paradox in the workforce, despite a 4.8 million cybersecurity expert deficit worldwide, thousands of competent IT workers are still underutilized as a result of strict recruiting practices and a lack of investment in local talent development. While degrees and certifications are still important, practical experience gained through laboratories, bug bounty programs, or internships has emerged as the key differentiator.

When combined, these patterns point to a fundamental transformation of the cybersecurity sector as well as an increase in demand for cybersecurity services. Cybersecurity firms that can innovate at scale while navigating governmental changes and global uncertainties are being keenly watched by investors, particularly those keeping an eye on high-growth tech industries.

Methodology

In order to find the Best Cybersecurity Stocks to invest in under $20, we started by searching for companies working in the cybersecurity sector using the Finviz stock screener, applying a price filter to include just those trading below $20 per share. Following the compilation of the list, we used Insider Monkey’s hedge fund holdings database to analyze hedge fund sentiment for each stock. Next, we arranged the stocks according to the number of hedge funds that owned each one in ascending order, as per Insider Monkey’s database of Q4 2024. The final list consists of cybersecurity stocks under $20 that are currently overlooked by institutional investors, perhaps representing discounted chances in a quickly changing field.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

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SentinelOne, Inc. (NYSE:S)

Share Price: $18.42

Number of Hedge Fund Holders: 46

SentinelOne, Inc. (NYSE:S) is a leading worldwide cybersecurity company based in Mountain View, California. The company’s AI-powered Singularity Platform enables autonomous threat prevention, detection, and response across endpoints, cloud workloads, and identity credentials. The company has rapidly expanded beyond traditional endpoint protection, now delivering solutions for cloud security, exposure management, identity protection, and its flagship AI security agent, Purple AI. SentinelOne, Inc. (NYSE:S) continues to disrupt the $100 billion cybersecurity sector with rapid innovation and a robust partner ecosystem.

SentinelOne, Inc. (NYSE:S) reported strong performance for the fourth quarter of 2025, ended January 31, 2025. Revenue increased 29% year-over-year to $226 million, with annual recurring revenue (ARR) totaling $920 million. More than half of SentinelOne’s bookings now come from non-endpoint solutions, indicating widespread use of their AI SIEM, cloud, and data security capabilities. The company had record operating margins and positive free cash flow for the entire year. SentinelOne’s Singularity Platform once again stood out in the MITRE ATT&CK Evaluations, obtaining 100% detection with no detection delays and 88% fewer alarms than competitors, demonstrating its real-time, high-fidelity protection.

SentinelOne, Inc. (NYSE:S)’s strategic goals gained traction following two key announcements. On April 24, 2025, the firm announced a new agreement with Nord Security to integrate its endpoint protection with the NordLayer network security technology. This partnership, which is already available through Pax8, allows small and medium-sized organizations (SMBs) to automate the disconnection of compromised devices while seamlessly integrating endpoint and network defense. The firms demonstrated their unified solution at RSAC 2025, demonstrating SentinelOne’s dedication to developing a holistic security ecosystem.

SentinelOne, Inc. (NYSE:S) anticipates reaching a significant milestone in its growth trajectory in fiscal 2026 when both ARR and revenue transcend $1 billion for the first time. By strengthening free cash flow generation, preserving industry-leading gross margins, and expanding its AI-native security products, the company is committed to fostering premium growth. For investors looking for a next-generation leader, SentinelOne (NYSE:S) stands out as one of the best AI cybersecurity stocks under $20 thanks to its distinct technological advantage, award-winning platform, and recent strategic alliances.

Overall, S ranks 1st on our list of best cybersecurity stocks to invest in under $20. While we acknowledge the potential of S, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than S but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.