Oppenheimer Bullish on Cybersecurity: CRWD & S Shine
💡 Key Takeaway
Independent channel checks confirm strong operational momentum for both CrowdStrike and SentinelOne, though valuation approaches differ significantly.
What the Channel Checks Revealed
Oppenheimer analysts conducted independent channel checks, a research method that surveys a company's business partners and customers to validate performance claims. The results were particularly positive for the cybersecurity sector.
Two companies stood out in these checks: CrowdStrike (CRWD) and SentinelOne (S). For CrowdStrike, Oppenheimer reported the 'best sentiment' from its value-added reseller (VAR) partners, who provided positive revisions to their expectations.
SentinelOne showed marked improvement compared to earlier in the year, with most of its VAR partners finishing 2025 above plan after being below plan for most of the year. Partners reported high-20% growth for the calendar year and raised their outlooks for the first half of 2026.
The checks also highlighted specific product strengths, with SentinelOne's Purple AI being praised as the best autonomous security operations center solution on the market, even outperforming CrowdStrike's Charlotte AI.
Why This Validation Matters for Investors
Channel checks provide third-party validation that can be more reliable than company guidance alone, making this positive feedback particularly meaningful for investors assessing these cybersecurity stocks.
For CrowdStrike, the strong channel checks confirm the company has successfully moved past its summer 2024 IT outage and is regaining growth momentum. The company's Falcon Flex licensing model appears to be driving customer adoption effectively.
SentinelOne's improved channel performance suggests the company may be turning a corner operationally. The combination of strong technology praise (especially for Purple AI) and improving partner sentiment could signal accelerating business momentum.
The valuation disparity between the two companies creates an interesting investment dynamic. CrowdStrike trades at a premium 18x forward sales multiple, while SentinelOne trades at a deeply discounted below 4x forward P/E ratio despite 23% revenue growth.
Source: The Motley Fool
Analysis generated by Bobby AI quantitative model, reviewed and edited by our research team. This is not financial advice. Always do your own research before making investment decisions.
Bobby Insight
Both stocks present compelling opportunities, with SentinelOne offering exceptional value for growth-oriented investors.
The independent channel validation provides confidence in both companies' operational momentum. While CrowdStrike remains the premium play, SentinelOne's combination of strong growth, technology praise, and deep valuation discount creates significant upside potential.
What This Means for Me
