It’s not easy to find quality stocks trading for less than $20 per share. While stock price is not the only indicator of a stock’s merits, large companies tend to trade higher over time, so they generally don’t stay as cheap very a long time.
However, there are exceptions.
Believe it or not, some potentially successful tech companies are trading at attractive prices that, in hindsight, might look like bargains. SentinelOne (NYSE:S) And Lemonade (NYSE:LMND) stand out as speculative stocks with enough promise to potentially make buyers look like long-term geniuses.
Here is the pitch for each stock today.
1. SentinelOne: A rising star in AI and cybersecurity
SentinelOne’s stock price continues to decline despite continued evidence that the company is getting stronger. Cybersecurity is a competitive field, but SentinelOne stands out with its artificial intelligence (AI)-optimized Singularity platform, which proactively identifies and addresses potential threats. Shares are trading down 77% from their peak, but it’s not a dead business. In fact, it’s quite the opposite.
The company recently released its first quarter results for its 2025 fiscal year and reported 40% year-over-year revenue growth. Additionally, the company is making huge strides toward becoming a profitable business. SentinelOne reported a substantial first quarter of free cash flow, converting 18% of revenue. Last year? Free cash flow margin was negative 24% in the first quarter. It’s a 42–percentage point jump in 12 months. Making cash flow positive will add money to its balance sheet’s $1.1 billion pile and put GAAP earnings next in line.
SentinelOne’s enterprise value is only $4.5 billion at this depressed stock price, with an enterprise value-to-revenue ratio of just 5.5. For context, great rival Crowd strike trades at a much higher income, 18 times higher. It could be argued that CrowdStrike’s larger size, similar growth, and better financial metrics earn a bonus, but should the gap be that wide? Those who buy SentinelOne could enjoy good long-term investment returns if it continues to realize its potential.
2. Lemonade: The company that is reinventing insurance
Lemonade is the new kid on the block in the insurance industry. She entered a tough market by doing things differently. Instead of a network of agents that customers have to call, Lemonade uses AI-powered chatbots to interact with customers. You can purchase an insurance policy or file a claim with Lemonade in as little as 90 seconds. Additionally, Lemonade caps its premium revenue and donates its excess profits to charity. These differences have created a company that users want to do business with.
The company’s customer base is growing rapidly; nearly 2.1 million people use Lemonade, up 13% year over year in the first quarter. Lemonade is slowly expanding its product offerings, including renters, home, car, pet and life insurance. Combining customer growth and cross-selling…
