Sea stock is flashing a historically bullish signal
One of Schaeffer's top stock picks for 2025, Sea Ltd (NYSE:SE), has been rallying on the charts after bouncing off newfound support at the $100 level. The shares just hit a May 16 three-year high of $165.31, and are still hanging out in that region, last seen trading at $162.51 today.
Plus, SE's recent peak comes amid low implied volatility (IV), per its Schaeffer's Volatility Index (SVI) of 35%, which sits in the 6th percentile of its annual range. This has occurred six other times in the past three years, after which the equity was higher one month later 83% of the time with an average 8.7% gain. From its current perch, a similar move would put Sea stock at $176.64, a level not seen since January 2022.
SE saw plenty of bullish attention after its upbeat first-quarter report last week, which helped the stock notch its sixth consecutive post-earnings win. Still, five of the 21 analysts in coverage carry a "hold" rating, leaving some room for optimism. And if the stock does extend its rally, surpassing its 12-month consensus price target of $173.40, price-target hikes could provide tailwinds.