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 combines solid fundamental growth metrics with a promising chart pattern, making it a candidate worth examining further.

Strong Growth Fundamentals

SEA Ltd. operates across e-commerce, digital financial services, and digital entertainment through its platforms Shopee, SeaMoney, and Garena. The company has demonstrated impressive growth:

• Revenue Growth: Up 30.31% over the past year, with a 5-year average annual growth of 50.55%.
• Earnings Expansion: EPS surged by 2,740% in the last year, with expectations for continued strong growth.
• Solid Financial Health: A ChartMill Health Rating of 7/10, supported by manageable debt levels and strong liquidity.

While profitability is still developing (ChartMill Profitability Rating: 5/10), the company’s reinvestment in growth suggests long-term potential rather than immediate dividend returns.

Technical Setup

The stock’s technical rating stands at 9/10, with a setup score of 8/10, indicating consolidation near a potential breakout level:

• Trend Strength: The long-term trend remains positive, while short-term price action shows consolidation.
• Support & Resistance: Key support lies near $153.39-$155.56, with resistance around $156.27. A breakout above resistance could signal further upside.
• Relative Strength: SE outperforms 90% of its entertainment industry peers over the past year.

Why This Combination Matters

Growth stocks with strong technical setups often attract momentum investors. SEA Ltd.’s fundamentals justify its growth trajectory, while the chart suggests a possible entry point if the stock breaks higher.

For more details, review the full fundamental analysis and technical report.

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Disclaimer

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