Imagine Holding Sea (NYSE:SE) Shares While The Price Zoomed 382% Higher

Active investing isn't easy, but for those that do it, the aim is to find the best companies to buy, and to profit handsomely. When you find (and hold) a big winner, you can markedly improve your finances. For example, the Sea Limited (NYSE:SE) share price is up a whopping 382% in the last year, a handsome return in a single year. On top of that, the share price is up 45% in about a quarter. We'll need to follow Sea for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

See our latest analysis for Sea

Because Sea made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year Sea saw its revenue grow by 133%. That's a head and shoulders above most loss-making companies. But the share price has really rocketed in response gaining 382% as previously mentioned. Despite the strong growth, it's certainly possible the market has gotten a little over-excited. So this looks like a great watchlist candidate for investors who look for high growth inflexion points.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Sea is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.

A Different Perspective

Sea boasts a total shareholder return of 382% for the last year. That's better than the more recent three month gain of 45%, implying that share price has plateaued recently. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 2 warning signs for Sea that you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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