Valued at $52.3 billion by market cap, Sempra (SRE) focuses on infrastructure and utility services. The California-based company engages in electricity and natural gas distribution, storage, and transportation through its Sempra California, Sempra Texas Utilities, and Sempra Infrastructure segments.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Sempra fits this criterion perfectly, exceeding the mark. Sempra is renowned for its leadership in advancing energy infrastructure and its strategic role in the global energy transition, serving 40 million consumers with innovative, purpose-driven energy solutions.
Despite a 1.6% dip from its 52-week high of $84.28 achieved on Sep. 4, shares of the natural gas and electricity provider are up 10.1% over the past three months. The stock has outperformed The Utilities Select Sector SPDR Fund (XLU), which gained 8.4% during the same period.
However, longer term, Sempra’s shares have soared nearly 11% on a YTD basis, lagging behind XLU's 21.2% gain. Moreover, SRE's shares have risen 16.4% over the past 52 weeks, compared to XLU's 21.5% gains over the same time frame.
Nevertheless, SRE has been trading above its 50-day and 200-day moving average since late April, indicating a bullish price trend.
Shares of Sempra fell 2.1% on Aug. 6 due to the company missing Wall Street estimates for both Q2 profit and revenue, reporting an adjusted profit of $0.89 per share and revenue of $3 billion. The underperformance was primarily driven by weakness in its California segment, where revenue and electric sales declined.
In comparison, its rival, Ameren Corporation (AEE), has underperformed SRE, with shares of AEE surging 6.5% over the past 52 weeks. But, Ameren has gained 16.9% on a YTD basis, outpacing SRE.
Despite SRE’s underperformance over the past year, analysts are moderately bullish, with a consensus rating of "Moderate Buy" from 15 analysts. It is currently trading below the mean price target of $88.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
