Robust earnings growth is a hallmark of winning companies and their stocks. Analysts recently raised their profit estimates on e-commerce platform operator Sea Ltd. (SE) and AppLovin (APP). Both stocks made big moves after the companies reported earnings.

The IBD Screen Of The Day found 269 names on the IBD Rising Profit Estimates list. IBD Leaderboard and MarketSurge Growth 250 names Sea Ltd. and AppLovin stood out and are worth highlighting.

E-Commerce Stock Sea Ltd. Is Ready To Buy

Sea Ltd. gapped up 19.1% in huge volume and broke out of a consolidation pattern with a 172.65 buy point on Aug. 12. SE stock is in the 5% buy zone up to 181.28, according to MarketSurge pattern recognition.

The e-commerce stock also reclaimed its 50-day moving average on the jump.

The giant move came after the Southeast Asia e-commerce platform operator reported second-quarter earnings of 65 cents per share vs. 14 cents per share a year ago. Its revenue grew 38% to $5.26 billion, topping views, representing its strongest sales growth since early 2022.

The solid report prompted Wall Street analysts to raise their 2025 earnings forecasts to an average of $3.59 per share, or 385% growth. And full-year 2026 projections now show $5.42 per share, or a 51% increase.

Third-quarter sales forecasts call for a 30% increase. Growth for the next three quarters is estimated at 24%, 26% and 20%, respectively.

Sea Ltd. operates three businesses. Shopee is an e-commerce platform, Garena is an online game developer and publisher, and Monee is a digital payments and financial services provider.

Sea Ltd. is tied with DoorDash (DASH) for the No. 1 spot out of 58 stocks in the Retail-Internet group. The group holds the 3rd spot out of the 197 industry groups that Investor's Business Daily tracks.

Mutual funds have added shares for six straight quarters, according to IBD Stock Checkup.

The stock was discussed on Monday's IBD Live show. As a bonus, SE stock holds a best-possible IBD Composite Rating.

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AppLovin Stock Rallies After Earnings

AppLovin stock soared 12% in heavy trading and broke out of an early-stage cup base with a 428.99 buy point on Aug. 6, following the company's earnings report.

The breakout faded within several days, and the shares pulled back into the buy range, which goes up to 450.44.

AppLovin reported another blockbuster quarter of profit growth. Its second-quarter earnings grew 153% to $2.28 per share on 77% sales growth. The company operates a platform used by mobile app developers to help monetize, market, advertise, and grow their user base.

Analysts' projections now show full-year 2025 profit more than doubling to $9.18 per share. Full-year 2026 earnings estimates call for a 46% rise to $13.41 per share.

But revenue growth is projected to significantly slow to single digits over the following three quarters, before improving.

Mutual funds have boosted their positions for eight straight quarters, with 2,376 owning shares in June. Five IBD Mutual Fund Index names own shares, including Janus Henderson Enterprise Fund (JAENX), with a position of 1.7 million shares.

Moreover, management has a vested interest in share price performance, with its 5% stake in the company.

Its IBD Accumulation/Distribution Rating of B+ indicates fairly heavy institutional buying over the last 13 weeks.

Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.

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