SEA LTD-ADR (NYSE:SE) – A High Growth Momentum Stock with Strong Technical Setup

SEA LTD-ADR (NYSE:SE) stands out as a high-growth momentum candidate with a solid technical setup, making it a noteworthy stock for investors seeking both earnings momentum and favorable chart patterns. The company, which operates across e-commerce, digital financial services, and digital entertainment, has demonstrated strong fundamental growth alongside improving technical conditions.

Fundamental Strengths Supporting Growth Momentum

• Exceptional Earnings Growth: SE reported a staggering 2,740% year-over-year EPS growth (TTM), with recent quarterly EPS growth exceeding 1,725%. This acceleration reflects improving profitability.
• Revenue Expansion: Sales grew 30.3% year-over-year, with consistent quarterly revenue beats (3 out of the last 4 quarters).
• Profit Margin Expansion: The latest quarter’s profit margin reached 4.79%, up from 3.44% in the prior quarter and 2.64% in the last fiscal year.
• Positive Analyst Revisions: EPS estimates for the next year have been revised upward by 16.3% over the past three months, signaling confidence in continued growth.

Technical Strength and Setup Quality

• Technical Rating of 7: SE maintains a solid uptrend, outperforming 93% of all stocks over the past year and 87% of its industry peers.
• Setup Rating of 8: The stock is consolidating near a key resistance zone ($151.93 - $155.33), presenting a potential breakout opportunity.
• Support Levels: Strong support exists at $148.25, providing a clear stop-loss level for traders.
• Relative Strength: SE ranks in the top 6% of stocks based on price performance over the past year.

For a deeper technical breakdown, review the full technical report for SE.

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Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.