Sea Limited Stock Soars 3.24% on Strong Earnings

Sea Limited's stock price surged to its highest level since February 2022, with an intraday gain of 3.24%.

The strategy of buying SE shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 17.57% gain. This suggests that the strategy captured some of the subsequent volatility and price movements in the stock.

Sea Limited's financial performance has shown significant improvement, with EBIT margins increasing from 1.2% to 5.8% and revenue growth indicating strong financial health. This positive trend in financial metrics is likely to have a favorable impact on the company's stock price.

Earnings estimates have been a critical factor influencing Sea Limited's stock price. For the current quarter, the company is projected to report earnings of $0.96 per share, marking a substantial 108.7% increase from the same period last year. The consensus earnings estimate for the current fiscal year stands at $3.94, reflecting a 134.5% year-over-year increase, although this estimate has decreased by 4.2% over the past 30 days. For the next fiscal year, earnings are expected to rise by 34.1%. Changes in earnings estimates are closely tied to stock price movements, and Sea Limited's Zacks Rank #3 (Hold) suggests moderate expectations for near-term price performance.