SEA LTD-ADR (NYSE:SE) Combines Minervini's Trend Template with Strong Growth Momentum

The method used in finding good investment chances joins Mark Minervini’s strict Trend Template with a concentration on strong growth momentum. Minervini’s method highlights stocks showing good technical condition, marked by lasting upward trends, solid relative strength, and orderly moving average arrangements, while the high growth momentum screen makes sure these businesses also show quickening earnings, sales expansion, and gaining profitability. This two-part plan seeks to find equities that are both technically good and fundamentally set for growth, rendering them attractive to investors focused on growth.

Technical Strength: Following Minervini’s Trend Template

SEA LTD-ADR (NYSE:SE) shows a strong match with Minervini’s Trend Template, which is made to find stocks in clear upward trends with less instability and good momentum. Important points consist of:

• Price Above Key Moving Averages: The present price of $189.71 trades much higher than the 50-day ($163.91), 150-day ($146.36), and 200-day SMA ($137.91), confirming both near and extended-term positive trends.
• Upward-Sloping Moving Averages: All main moving averages are increasing, with the 200-day SMA moving up from $137.48, showing continued upward momentum.
• Moving Average Order: The 50-day SMA is positioned above both the 150-day and 200-day SMAs, strengthening the stock’s speeding up trend formation.
• Distance from 52-Week Extremes: The present price is within 0.5% of its 52-week high ($190.75) and is 148% above its 52-week low ($76.38), emphasizing strong rebound and leading traits.
• Superior Relative Strength: With a ChartMill Relative Strength score of 95.28, SE does better than 95% of all stocks, a sign of market leadership as highlighted in Minervini’s plan.

These technical features are important because they assist in removing unsteady or falling stocks, letting investors concentrate on issues with verified strength and a greater chance of continued progress.

Fundamental Momentum: Strong Growth Qualifications

Beyond technicals, SE displays solid fundamental growth, making it a possibility for momentum and growth investors. Important measures include:

• Earnings Growth:
  • TTM EPS jumped 651.43% year-over-year, getting to $1.93.
  • New quarterly EPS growth is very good, with the most recent quarter up 364.29% year-over-year and the quarter before climbing 1,725%.
• Revenue Expansion:
  • TTM revenue expanded 33.95%, showing good top-line momentum.
  • Quarterly sales gains stay solid, with the last quarter up 38.16% and steady double-digit expansion in earlier times.
• Profitability Gains:
  • The profit margin in the newest quarter hit 7.72%, up from 3.44% three quarters before, showing successful cost control and operational effectiveness.
• Analyst Revisions and Surprises:
  • EPS estimates for the next year have been adjusted upward by 7.95% over the past three months, hinting at increasing positive sentiment.
  • Revenue estimates also had a positive adjustment of 3.54%, while the business has exceeded revenue estimates in three of the last four quarters.

These parts are key for high-growth investing because they show a company’s capacity to not just raise sales but also turn that expansion into earnings, often pulling in institutional attention and leading to more price gains.

Technical and Setup Evaluation

According to ChartMill’s technical study report, SE has a perfect technical rating of 10, showing very good trend condition, better performance compared to the market and its industry, and trading close to 52-week highs. But, the setup rating is now low (2), meaning that while the stock is technically good, its recent price activity has been too unstable to give a perfect, low-risk entry chance. The report mentions several support levels, with the closest between $176.21 and $178.77, which might give a buffer against declines.

For a complete technical examination, readers can look at the full technical analysis report for SE.

Conclusion

SEA LTD-ADR makes a strong argument for investors using the Minervini trend-following and high-growth momentum plan. Its exact following of the Trend Template highlights technical soundness, while outstanding earnings expansion, growing profit margins, and positive analyst adjustments emphasize its fundamental attraction. Even though the present setup might not be perfect for quick entry because of recent instability, the stock’s technical and growth features make it a notable possibility for watchlists and more study.

For those wanting to investigate similar high-growth, technically good stocks, more screening outcomes can be found through this High Growth Momentum + Trend Template screen.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.