Sea Limited Sponsored ADR (SE) Suffers a Larger Drop Than the General Market: Key Insights

In the latest close session, Sea Limited Sponsored ADR (SE) was down 3.16% at $79.86. This move lagged the S&P 500's daily loss of 1.74%. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 2.38%.

Prior to today's trading, shares of the company had lost 21.06% lagged the Computer and Technology sector's loss of 5.77% and the S&P 500's loss of 4.99%.

The upcoming earnings release of Sea Limited Sponsored ADR will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.05, reflecting a 22.09% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.91 billion, indicating a 35% increase compared to the same quarter of the previous year.

SE's full-year Zacks Consensus Estimates are calling for earnings of $4.85 per share and revenue of $29.95 billion. These results would represent year-over-year changes of +47.42% and +27.54%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Sea Limited Sponsored ADR. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.93% downward. Sea Limited Sponsored ADR is currently a Zacks Rank #4 (Sell).

In terms of valuation, Sea Limited Sponsored ADR is presently being traded at a Forward P/E ratio of 16.99. Its industry sports an average Forward P/E of 18.93, so one might conclude that Sea Limited Sponsored ADR is trading at a discount comparatively.

We can additionally observe that SE currently boasts a PEG ratio of 0.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SE's industry had an average PEG ratio of 1.04 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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