It can be challenging to find high-quality stocks priced under $20 per share. While share price is not the only factor to consider when evaluating a stock, top-performing companies typically see their stock prices rise over time, making them less likely to remain at such low prices for long.
Nevertheless, there are exceptions to this rule.
Surprisingly, there are some potentially strong technology companies trading at attractive prices that may prove to be great investment opportunities in the future. SentinelOne (NYSE: S) and Lemonade (NYSE: LMND) are two such speculative stocks that show promise to deliver significant returns over time.
Here is a closer look at each of these stocks:
1. SentinelOne: A Leader in AI and Cybersecurity
Despite its stock price decline, SentinelOne continues to demonstrate strong business growth. The company stands out in the cybersecurity space with its AI-powered Singularity platform, which effectively identifies and addresses potential threats. While its shares have dropped by 77% from their peak, SentinelOne remains a resilient and growing company.
SentinelOne recently reported a 40% year-over-year revenue growth in Q1 of its fiscal year 2025. The company is also making significant progress towards profitability, with a notable improvement in free cash flow margins. This positive trajectory suggests that buying SentinelOne stock at its current price could lead to substantial returns in the long run.
2. Lemonade: Reinventing the Insurance Industry
Lemonade is disrupting the insurance industry by offering a unique customer experience powered by AI technology. The company’s user-friendly approach and commitment to social causes have attracted a growing customer base. With a diversified product portfolio and a focus on financial sustainability, Lemonade is positioned for continued growth.
Lemonade’s stock price has dropped significantly from its peak, presenting an opportunity for investors to benefit from the company’s future growth potential. As the company moves towards achieving cash flow breakeven, investors may see substantial returns on their investment over time.
Should You Invest $1,000 in SentinelOne Right Now?
Before considering an investment in SentinelOne, it’s important to note that the Motley Fool Stock Advisor team has identified 10 stocks with significant growth potential. While SentinelOne is not included in this list, the recommended stocks have historically delivered strong returns to investors.
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For more information on the recommended stocks, please visit the Motley Fool website.
Disclaimer: Justin Pope holds positions in SentinelOne. The Motley Fool has positions in and recommends CrowdStrike and Lemonade. The Motley Fool maintains a disclosure policy.
This article was originally published by The Motley Fool.
