Summary
Sea Ltd (SE) is a top pick based on Barchart's screening for highest technical buy signals, Weighted Alpha, momentum, and Trend Seeker buy signal.
Since the Trend Seeker buy signal on 1/21, Sea Ltd stock has appreciated by 10.57%.
Sea Ltd operates in digital entertainment, e-commerce, and digital financial services across Southeast Asia, Latin America, and globally.
Key platforms include Garena for gaming, Shopee for e-commerce, and SeaMoney for financial services, including mobile wallets and insurance under SeaInsure.
The Chart of the Day belongs to the internet retail company Sea Ltd (SE) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 1/21 the stock gained 10.57%.
DSP Price vs Daily Moving Averages:
SE (Barchart)
Sea Limited, together with its subsidiaries, engages in the digital entertainment, e-commerce, and digital financial service businesses in Southeast Asia, Latin America, rest of Asia, and internationally. It offers Garena digital entertainment platform for users to access mobile and PC online games, as well as promotes eSports operations. The company also operates Shopee e-commerce platform, a mobile-centric marketplace that provides integrated payments, logistics infrastructure, and seller services. In addition, it offers SeaMoney digital financial services comprising consumer, and small and medium-sized enterprises (SME) credit, mobile wallets, payment processing, and banking services under the ShopeePay and SPayLater brands; and acts as an underwriter for various life and non-life insurance products under the SeaInsure brand name, as well as insurance agency services. The company was formerly known as Garena Interactive Holding Limited and changed its name to Sea Limited in April 2017. Sea Limited was incorporated in 2009 and is headquartered in Singapore.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 181.44+ Weighted Alpha
- 200.07% gain in the last year
- 1.55 - 60 month Beta
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 14 new highs and up 20.65% in the last month
- Relative Strength Index 74.77%
- Technical support level at $125.43
- Recently traded at $130.65 with 50 day moving average of $115.12
Fundamental Factors:
- Market Cap $74.24 billion
- P/E 835.20
- Revenue expected to grow 26.78% this year and another 20.85% next year
- Earnings estimated to increase 153.45% this year and an additional 82.12% next year
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts issued 19 strong buy, 8 buy, 2 hold and 2 sell opinions on the stock
- Their price targets between $29 and $159 - This is a VERY WIDE range
- Value Line rates the stock above average but has a price target of $102 for a 20% loss and comments:" Sea Limited ADS' have risen nicely in price over the past three months. Following considerable appreciation in the price in the past year, this issue presently offers limited capital gains potential for the next 18 months as well as for the 3- to 5-year span. Moreover, we think that the risk profile is unfavorable here. "
- CFRAs MarketScope rates the stock a strong buy and comments:"We forecast revenue growth of 24%/19% in 2024/2025 for Sea. We expect Shopee’s higher monetization initiatives (e.g., enhanced service offerings for sellers, increased ad placements, and higher commission rates), stronger traction in live-streaming e-commerce (which accounted for 15% of its order volume in the Southeast Asian markets in December 2023), improved goods delivery and return services, and improvements in consumer spending to drive its revenue growth."
MorningStar thinks the stock is 18% under valued and comments:" We expect Shopee to be Sea’s main valuation driver for the long term. E-commerce as a percentage of retail sales was only 10% in Southeast Asia in 2023 as per eMarketer, leaving ample room for incumbents and new entrants to expand. We assume Shopee’s gross merchandise volume, or GMV, to grow at 10% CAGR during 2023-28, versus eMarketer’s projection of 8% for Southeast Asia. "
67,940 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
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On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
