SEA LTD-ADR (NYSE:SE) – A Strong Growth Stock with Technical Breakout Potential

SEA LTD-ADR (NYSE:SE) was identified by our screener as a strong growth stock with a favorable technical setup. The company operates across e-commerce, digital financial services, and digital entertainment, positioning it well in high-growth sectors.

Why SEA LTD Stands Out

Strong Growth Fundamentals

• Revenue Growth: SEA LTD has demonstrated impressive revenue growth, increasing by 30.31% over the past year and maintaining a 50.55% annual growth rate over multiple years.
• Earnings Expansion: Earnings per share (EPS) surged by 2,740% in the last year, reflecting improving profitability.
• Future Expectations: Analysts project EPS growth of 97.34% annually, indicating continued momentum.

Solid Financial Health

• Balance Sheet Strength: The company has an Altman-Z score of 4.63, well above the threshold for financial stability.
• Debt Management: SEA LTD’s debt-to-free-cash-flow ratio stands at 1.93, meaning it could repay its debt in under two years using cash flow alone.

Technical Breakout Potential

• Trend Strength: Both short-term and long-term trends are positive, with the stock trading near its 52-week high.
• Support Levels: Multiple support zones exist between $160.36 and $104.87, providing downside protection.
• Recent Signal: A Pocket Pivot pattern recently emerged, suggesting accumulation by institutional investors.

Key Considerations

While SEA LTD shows strong growth and technical promise, investors should note:

• Valuation: The stock trades at a high P/E ratio (112.94), though forward earnings expectations help justify the premium.
• Profitability: Margins are improving, but profitability remains moderate compared to industry leaders.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks with similar characteristics.

For a deeper dive, review the full fundamental analysis of SEA LTD and the technical analysis report.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.