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Why Sea Limited Sponsored ADR (SE) Dipped More Than Broader Market Today

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Sea Limited Sponsored ADR (SE - Free Report) ended the recent trading session at $84.47, demonstrating a -3.56% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.36% for the day. On the other hand, the Dow registered a loss of 1.64%, and the technology-centric Nasdaq decreased by 1.46%.

The company's shares have seen a decrease of 19.28% over the last month, not keeping up with the Computer and Technology sector's loss of 0.24% and the S&P 500's loss of 1.76%.

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 Zacks Consensus Estimate for revenue is projecting net sales of $6.91 billion, up 35% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.85 per share and a revenue of $29.95 billion, indicating changes of +47.42% and +27.54%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Sea Limited Sponsored ADR. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.93% lower within the past month. Sea Limited Sponsored ADR presently features a Zacks Rank of #4 (Sell).

Investors should also note Sea Limited Sponsored ADR's current valuation metrics, including its Forward P/E ratio of 18.05. This indicates a discount in contrast to its industry's Forward P/E of 19.46.

Investors should also note that SE has a PEG ratio of 0.63 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 1.1 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 142, placing it within the bottom 43% of over 250 industries.

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

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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