Clears a key level when looking to build a sea stock from 162% Rally.

Sea Limited (SE) is the IBD stock of the day for Wednesday. Shares of the Southeast Asia-focused Internet services company are breaking above their 50-day line and forming a flat-bottom.

Bahr is looking to build a bigger 2024. The stock has rocketed 162% over the past year and is up 6% so far in January. As noted in a recent New America profile, Marine’s gains were driven by accelerating growth and a return to core profitability for its e-commerce operations. Its Shopee offering is the largest e-commerce platform in Southeast Asia and has expanded to parts of Latin America.

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On the stock market today, Marine shares rose 111.04 percent. On the gains, the marine stock is recovering from a test of the 50-day moving average support level. Shares are hovering above the stock’s short-term 21-day moving average.

Marine stocks hit a more than two-year high of 119.47 in December before pulling back slightly to close the year.

Q4 Expectations for the sea

Along with Shopee, Sea also operates digital payment provider SeaMoney and Garena, a global online games developer. Marine profits followed a decline last year to close in 2023.

The stock sold off in August 2023 after the company said it would increase investments in its e-commerce business. Analysts saw the move as a response to growing competition from TikTok. PDD Holdings‘ (PDD) Temu, the Alibaba (BABA– Supported by Lazada and others.

But the sea effect helped push investors back. In its latest Q3 results, which it published in November, Bahr turned in a loss of 24 cents per share from 26 cents per share for the same period a year ago. According to the Nov. 12 earnings release, sales jumped 31 percent to $4.3 billion. Since the first quarter of 2022, the sea has recorded the fastest growth.

E-commerce-related revenue grew 41 percent to $3.2 billion. Shopee, meanwhile, turned a profit in both Asia and Brazil on an adjusted basis.

On the day of the report, the sea stock increased by 10.5%, at the end of the year another rally for the stock began.

The company’s fourth quarter earnings will present its next big challenge. Analysts, on average, expected Bahr to post earnings of 37 cents per share for the December quarter. That compares with a loss of 19 cents at the start of the year. Sales are forecast to grow 28 percent to $4.6 billion. The result is at the beginning of March.

Sea stocks chasing Covid-era highs

Meanwhile, marine stocks spiked during the outbreak and have been chasing highs ever since. Despite closing at a high level last year from the start of 2022, marine stocks are still in good shape with 372 reached in 2021.

But analysts are concerned that Bahr may continue to build on profits in 2024. Of the 33 analysts following the stock, 29 have a buy rating, according to FactSet. Three analysts are independent and one holds the sales call.

Marine’s relative strength rating, meanwhile, remains a strong 97 if possible.

In addition, sea stock has a strong IBD composite rating of 95 out of 99. IBD Stock Check. The result combines five different levels of ownership into one. The best growth stocks typically have a composite rating of 90 or higher.

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