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Sea Limited Sponsored ADR (SE) Falls More Steeply Than Broader Market: What Investors Need to Know

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Sea Limited Sponsored ADR (SE - Free Report) closed the most recent trading day at $99.50, moving -5.13% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.21%. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 2.15%.

Shares of the company have appreciated by 13.08% over the course of the past month, outperforming the Computer and Technology sector's loss of 4.58%, and the S&P 500's gain of 0.42%.

The upcoming earnings release of Sea Limited Sponsored ADR will be of great interest to investors. On that day, Sea Limited Sponsored ADR is projected to report earnings of $1 per share, which would represent year-over-year growth of 17.65%. Simultaneously, our latest consensus estimate expects the revenue to be $7.34 billion, showing a 36.82% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.15 per share and revenue of $30.72 billion. These totals would mark changes of +26.14% and +30.84%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Sea Limited Sponsored ADR. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.86% decrease. Sea Limited Sponsored ADR is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Sea Limited Sponsored ADR's current valuation metrics, including its Forward P/E ratio of 25.3. This denotes a premium relative to the industry average Forward P/E of 18.63.

It's also important to note that SE currently trades at a PEG ratio of 0.79. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.01.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 39% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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