If you've got $5,000 in your pocket, there are better ways to try to double your money than betting on sports or going to a casino. Investing in growth stocks at cheap valuations can be a much better move. Let's look at two growth stocks that have the potential to double your money.
UiPath
UiPath (PATH 7.88%) has one of the biggest opportunities in artificial intelligence (AI) in front of it, yet the stock trades at a forward price-to-sales (P/S) multiple of only 5 times. The company is trying to become one of the main platforms for AI agent orchestration to help organizations manage the growing number of AI agents from various software vendors.
Coordinating various AI agents and managing AI agent sprawl is set to become a big issue in the coming years. Meanwhile, UiPath's background in robotic process automation (RPA), which is the use of software bots to perform simple, repetitive tasks, puts it in a strong position to lead this emerging field. This gives it a compliance and governance framework and also access to legacy systems.
NYSE: PATH
Key Data Points
The company's new Maestro platform, meanwhile, can also help coordinate both AI agents and software bots. While AI agents are great at handling complex problems, they are considerably more expensive than running software bots.
Maestro has the ability to manage both AI agents and bots, assigning the best tasks for each to handle. This helps organizations save money over the long run, and also keeps its current RPA solution relevant. The platform also allows customers to create their own AI agents through no-code and low-code tools.
UiPath is still in the early innings of its agentic AI orchestration platform transformation, and it has recently signed several partnerships to work with leading AI companies. Its revenue growth accelerated to 16% last quarter, but this could just be the start. If it is, between its valuation and growth opportunities, the stock has the potential to double from here in the coming years.
Image source: Getty Images.
SentinelOne
SentinelOne (S 2.68%) is arguably one of the most underappreciated cybersecurity companies in the market today. The stock trades at a forward P/S multiple of only 4.2, while it has been growing its revenue at a mid-20% clip with an adjusted gross margin of nearly 80%.
That's a huge discount to its larger peers like Palo Alto Networks, which trades at a forward P/S multiple of 12 times and grew its revenue by 16% last quarter, and CrowdStrike, which trades at a 20 times multiple based on fiscal 2027 analyst estimates and saw its revenue increase 22% in its fiscal Q3. Just closing the gap on its valuation versus these peers could see its stock double.
NYSE: S
Key Data Points
However, the company may arguably have just as good, if not better, technology. It consistently ranks as one of the top endpoint security vendors by technology research company Gartner, and its remediation technology can easily return systems to pre-attack levels.
And as Citron Research recently pointed out, it was SentinelOne that helped discover the cause of the breach behind a suspected Chinese state-sponsored hacker attack on at least nine telecom companies by a group called Salt Typhoon. The attack exploited vulnerabilities in devices from Palo Alto, Cisco Systems, and others.
Meanwhile, the company has several potential growth catalysts. Its deal with Lenovo, the world's largest enterprise PC vendor, to pre-install its Singularity Platform on all its new PCs (personal computers) is just starting to ramp up. It also has potential upsell upside from this partnership, as Lenovo customers can upgrade to SentinelOne's higher-tier services, like Purple AI and Wayfinder Managed Detection and Response (MDR).
Finally, its recent acquisition of Prompt Security adds another area of opportunity by helping organizations protect against AI data leakage. If SentinelOne can continue to grow more quickly than its competitors and start to see some more operating leverage, the stock could easily double from here.
