1 Spectacular Growth Stock to Buy Before It Soars by as Much as 124%, According to Wall Street

Sea Limited (NYSE: SE) is a triple threat in the digital economy. The Singapore-based company operates the largest e-commerce platform in Southeast Asia, a booming digital financial services business, and a game development studio that is responsible for some of the world's most successful mobile titles.

Sea stock is down 34% this year amid soaring oil prices, sparking concerns about a potential drop in consumer spending, but this could be a great long-term buying opportunity. In fact, the majority of the analysts tracked by The Wall Street Journal gave the stock a buy rating, and none recommend selling.

The most bullish analyst in the group predicts the stock could soar by a whopping 124% from here. I think that is realistic, which is why I bought Sea stock myself back in March.

Image source: Getty Images.

Three spectacular growth stories under one roof

Shopee is Sea Limited's hybrid consumer-to-consumer and business-to-consumer e-commerce platform. It serves most Southeast Asian countries, including Singapore, Indonesia, and Malaysia, and is also expanding into Latin America, with a fast-growing presence in Brazil. Shopee processed over $37 billion in orders during the first quarter of 2026 (ended March 31), up 30% from the year-ago period.

Then there's Monee, which is Sea's digital financial services platform. It lends money to Shopee sellers to help them grow their businesses, and it also provides buy-now, pay-later loans to consumers to boost their spending power. Monee had a record $9.9 billion in loans on its books at the end of the first quarter, a 71% year-over-year increase. Brazilian borrowers accounted for $1 billion of those loans, which was up by an eye-popping 250%.

Sea's third business segment is digital entertainment, led by the Garena game development studio. Garena's most successful mobile game is Free Fire, which has been downloaded around 2 billion times worldwide, but it also owns other blockbuster titles like Call of Duty: Mobile and EA Sports FC.

The studio had 666.5 million users across all titles during the first quarter, which was up modestly from the same quarter last year. But the percentage of users who made in-game purchases came in at 10.9%, the best result in five years.

Accelerating revenue growth

Sea Limited generated $7.1 billion in total revenue during the first quarter, which represented a blistering year-over-year growth rate of 46.6%. It marked an acceleration from the company's 36.4% revenue growth for the whole of 2025, and all three business units contributed to the strong result.

Data source: Sea Limited. YOY = Year over year.

Sea also had a great quarter at the bottom line, delivering $1 billion in adjusted non-GAAP (generally accepted accounting principles) earnings before interest, tax, depreciation, and amortization (EBITDA) for the first time ever. Although Shopee accounted for most of the company's revenue, it contributed just $223.2 million in adjusted EBITDA because of its razor-thin margins. The platform aims to give consumers the lowest possible prices, which isn't a recipe for big profits.

Sea's largest contributor to adjusted EBITDA was Garena, which generated $573.6 million despite its comparatively small revenue base. This is one of the benefits of Sea's highly diversified business.

I agree with Wall Street's bullish consensus on Sea stock

The Wall Street Journal tracks 30 analysts who cover Sea stock, and 23 have given it a buy rating. Two others are in the overweight (bullish) camp, while the remaining five recommend holding. Sea has attracted no sell ratings from this group of analysts.

The analysts have an average price target of $141.55, which suggests Sea stock could climb by 63% over the next 12 months or so. However, the Street-high target of $195 implies a potential upside of 124% instead.

I think both targets are achievable based on Sea's attractive valuation. Its stock is trading at a price-to-sales (P/S) ratio of just 2.1, which is well below its three-year average of 3.3. Moreover, Wall Street expects the company's annual revenue to grow to $29.8 billion in 2026 and $36.2 billion in 2027 (according to Yahoo! Finance), placing its stock at forward P/S ratios of 1.78 and 1.47, respectively.

Data by YCharts.

That means Sea stock would have to climb by 124% by the end of 2027 just to trade in line with its three-year average P/S ratio of 3.3. And if the company's revenue growth continues to accelerate, I think its valuation could rise even further.

But another reason I like Sea is its rock-solid balance sheet. At the end of the first quarter, the company had a whopping $11.1 billion in cash, cash equivalents, and short-term investments, with less than $800 million in debt. That gives management an incredible amount of flexibility to invest aggressively in growth, which could be very bullish for shareholders over the long term.

Anthony Di Pizio has positions in Sea Limited. The Motley Fool has positions in and recommends Sea Limited. The Motley Fool has a disclosure policy.