In the latest close session, Sea Limited Sponsored ADR (SE) was down 1.28% at $97.36. The stock trailed the S&P 500, which registered a daily loss of 0.25%. Meanwhile, the Dow experienced a drop of 0.86%, and the technology-dominated Nasdaq saw an increase of 0.24%.
The company's shares have seen a decrease of 12.46% over the last month, not keeping up with the Computer and Technology sector's gain of 4% and the S&P 500's loss of 0.42%.
Investors will be eagerly watching for the performance of Sea Limited Sponsored ADR in its upcoming earnings disclosure. The company is expected to report EPS of $1.08, up 38.46% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.36 billion, up 35.39% from the year-ago period.
SE's full-year Zacks Consensus Estimates are calling for earnings of $3.79 per share and revenue of $31.58 billion. These results would represent year-over-year changes of +15.2% and +34.5%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Sea Limited Sponsored ADR. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Sea Limited Sponsored ADR possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Sea Limited Sponsored ADR is presently being traded at a Forward P/E ratio of 26.06. Its industry sports an average Forward P/E of 18.78, so one might conclude that Sea Limited Sponsored ADR is trading at a premium comparatively.
One should further note that SE currently holds a PEG ratio of 0.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.15.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Sea Limited Sponsored ADR (SE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).