Sea Limited hitting upper rail of downward sloped channel with earnings looming
Sea Limited (NYSE: SE) is an electronic gaming and multimedia company based in Singapore. The company is set to announce earnings results on November 12 with analysts expecting the company to report losses of $0.53 per share. The expected is lower than the $0.70 the company lost in the third quarter of last year.
Because the company has lost money to this point, the return on equity, profit margin, and operating margin are all negative. With the negative readings in these key indicators, the Tickeron SMR rating for Sea Ltd. is 100, the worst rating a company can get. The reading indicates weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating is 100, and that is also the worst rating a company can get in this category. It indicates that the returns do not compensate for the risks. Sea's unstable profits reported over time resulted in significant drawdowns within these last five years. A stable profit reduces stock drawdown and volatility.
The Tickeron Valuation Rating for Sea is 64 and that indicates that the company is fair valued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization.
In addition to the negative fundamentals, the technical picture isn't looking very good for Sea either. The stock has been trending lower since early August with a trend channel forming that defines the various cycles within the overall trend. The stock hit the upper rail of the channel on November 4 and turned lower the next day.
We also see that the stock is overbought based on the daily stochastic readings and the indicators made a bearish crossover on November 5. The 10-day RSI flirted with overbought territory, but turned lower on the downward move. The stock moved above its upper Bollinger Band on November 4 which is yet another indication that the stock is overbought and could turn lower.
Sea Limited doesn't have a great deal of analysts covering it, but all 11 analysts that are covering it rate the stock as a "buy". There is room for additional coverage on the stock, but there isn't any room for upgrades from the current coverage.
The one area that could help Sea is the short interest ratio. The ratio is at 6.5 currently and that indicates some bearish sentiment directed at the stock. If the company can issue an earnings surprise, the short sellers could add fuel to the rally as they scramble to cover their positions.
Looking back at previous earnings reports, I found two statistics that are concerning for Sea Ltd. Investors. First, the company has missed its EPS estimate in five of the last six quarters. The only time it beat during this stretch was back in May when the company only lost $0.64 per share when it was expected to lose $0.65.
The second concern was from stocksearnings.com and it showed that the stock has moved down after earnings' reports in 22 out of the last 35 quarters.
Given the fundamentals, the technical picture, the sentiment, and the earnings' history, I don't have much optimism for Sea Limited after reporting.
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Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
SE sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for SE moved above the 200-day moving average on August 26, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 62 cases where SE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where SE advanced for three days, in of 317 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SE moved out of overbought territory on August 13, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on August 25, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SE as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SE turned negative on August 19, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SE broke above its upper Bollinger Band on August 11, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.663) is normal, around the industry mean (32.550). P/E Ratio (46.085) is within average values for comparable stocks, (41.397). Projected Growth (PEG Ratio) (1.553) is also within normal values, averaging (1.377). Dividend Yield (0.000) settles around the average of (0.083) among similar stocks. P/S Ratio (2.744) is also within normal values, averaging (1.457).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
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General Information
a provider of online gaming services
Industry InternetRetail
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