Does SEA LTD-ADR (NYSE:SE) meet the Minervini criteria?

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if SEA LTD-ADR (NYSE:SE) is suited for growth investing. Investors should of course do their own research, but we spotted SEA LTD-ADR showing up in our Minervini growth screen, so it may be worth spending some more time on it.

Minervini Trend Template Analysis.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for SE:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Assessing Growth for SE

ChartMill assigns a High Growth Momentum Rating (HGM) to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth and profitability elements, including EPS and revenue growth, accelleration, surprises and revisions. In the case of SE, the assigned 6 reflects its growth potential:

Explosive Earnings Growth

• The recent financial report of SE demonstrates a 305.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• SE shows accelerating EPS growth: when comparing the current Q2Q growth of 305.0% to the previous quarter Q2Q growth of 192.0%, we see the growth rate improving.
• Sales acceleration happened 3 quarters in a row.
• Over the past year, SE has demonstrated 204.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• SE has achieved 36.88% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• Accelerating Sales growth for SE: the current Q2Q growth of 36.88% exceeds the previous quarter Q2Q growth of 30.75%.
• Sales acceleration happened 3 quarters in a row.
• The 1-year revenue growth of SE (28.75%) has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and expand its market share.

Profitability & Financial Strength

• The operating margin of SE has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• With a favorable trend in its profit margin over the past year, SE demonstrates its ability to enhance profitability through efficient operations.
• A Debt/Equity ratio of 0.68 highlights SE's commitment to maintaining financial stability.

Institutional Confidence & Market Strength

• SE demonstrates a balanced ownership structure, with institutional shareholders at 66.92%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.
• SE has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 98.19 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

How do we evaluate the setup for SE?

ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. SE currently holds a 6 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, SE also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 126.77, a Stop Loss order could be placed below this zone.

For an up to date full technical analysis you can check the technical report of SE

Final Thoughts

It looks like SEA LTD-ADR meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.