SEA LTD-ADR (NYSE:SE) Emerges as a High-Growth Momentum Stock with Strong Technical Setup

The search for high-growth momentum stocks with strong technical setups often leads investors to screen for securities that combine solid fundamental growth with favorable chart patterns. This approach, which integrates elements from both CANSLIM and Minervini methodologies, emphasizes companies demonstrating accelerating earnings, increasing profit margins, and positive analyst revisions, while also showing good technical health and consolidation patterns that indicate possible breakouts. By filtering for stocks with a High Growth Momentum Rating above 4, a Technical Rating above 7, and a Setup Rating above 7, investors can identify names that not only show promising growth paths but are also set for near-term price appreciation.

SEA LTD-ADR (NYSE:SE) appears as a notable candidate under this framework, displaying a mix of strong fundamental momentum and positive technical positioning. The company, which operates across digital entertainment, e-commerce, and financial services in Southeast Asia, has shown notable financial improvement, contributing to its High Growth Momentum Rating of 6.

Fundamental Growth Metrics

The company’s recent performance reflects strong operational execution and market growth:

• EPS Growth (TTM): 651.4% year-over-year
• Revenue Growth (TTM): 33.9% year-over-year
• Quarterly EPS Growth (most recent): 364.3% compared to the same quarter last year
• Profit Margin Expansion: Last quarter’s profit margin reached 7.72%, up from 3.44% three quarters prior

These metrics highlight significant operational leverage and scaling efficiency. The acceleration in bottom-line growth, paired with steady top-line growth, aligns with what high-growth momentum strategies usually target: companies that are not only growing fast but are also getting more profitable. Positive analyst revisions for next year’s EPS estimates, up nearly 8% over the past three months, add to the positive view about continued momentum.

Technical Strength and Setup Quality

From a technical perspective, SEA LTD-ADR shows very good strength, earning a perfect Technical Rating of 10. The stock is in a clear uptrend across both short-term and long-term timeframes, doing better than 94% of all stocks over the past year. Its price is trading near 52-week highs, reflecting continued investor confidence and momentum.

Moreover, the stock presents a firm consolidation pattern, shown by a Setup Rating of 7. Recent trading has happened within a set range, indicating a period of digestion after prior gains, a typical feature before possible breakouts. According to the detailed technical report, the stock has formed multiple support levels, with the nearest major support zone around $187,189, providing a sensible area for stop-loss placement if a breakout trade is made.

The combination of a high Technical Rating and a positive Setup Rating shows that the stock is not only in a strong trend but also presenting a structured risk/reward chance for entry. This fits with the strategy of entering during consolidation phases within an existing uptrend, with the goal of capturing the next move upward.

Strategy Alignment and Outlook

The criteria used in this screen, emphasizing high growth momentum, technical health, and setup quality, are key to strategies that aim to reduce risk while joining in strong upward moves. Stocks like SEA LTD-ADR, which show fundamental acceleration next to technical consolidation, often draw institutional interest and show lower volatility during accumulation phases.

For investors interested in finding similar opportunities, other candidates meeting these criteria can be examined using the High Growth Momentum Breakout Setups screen. This tool actively finds stocks that meet these strict filters, offering a useful starting point for more analysis.

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