San Diego, California-based Sempra (SRE) is an energy services company involved in the sale, distribution, storage and transportation of electricity and natural gas. With a market cap of $45.1 billion, Sempra operates through Sempra California, Sempra Texas Utilities, and Sempra Infrastructure segments.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Sempra fits the bill perfectly. Given the company’s extensive operations and substantial size, its valuation above this mark is unsurprising.
Despite its notable strengths, Sempra has tanked 27.5% from its all-time high of $95.77 touched on Nov. 25, 2024. Furthermore, SRE plummeted 21.6% over the past three months, underperforming the Nasdaq Composite’s ($NASX) 12.8% decline during the same time frame.
Sempra’s performance has remained grim over the longer term as well. SRE has plunged 15.4% over the past six months and 2.3% over the past 52 weeks, significantly underperforming NASX’s 42 bps uptick over the past six months and 9.1% gains over the past year.
To confirm the recent downturn, Sempra has traded mostly below its 50-day moving average since mid-December 2024 and fallen below its 200-day moving average in late February 2025.
Sempra’s stock prices dropped by a staggering 19% after the release of its disappointing Q4 results on Feb. 25. While the company reported a 7.6% year-over-year growth in total revenues to approximately $3.8 billion, it significantly fell below the Street’s expectations of $4.9 billion. Moreover, the company’s adjusted EPS of $1.50 missed the consensus estimates by almost 8%. Furthermore, due to recent and planned regulatory matters and a higher-cost environment, Sempra reduced its fiscal 2025 EPS guidance range from $4.90 - $5.25 to $4.30 - $4.70 and gave an EPS guidance range of $4.80 to $5.30 for fiscal 2026, which fell below analysts’ expectations and shattered investor confidence.
Despite its lackluster performance, Sempra has performed better than its peer the AES Corporation’s (AES) 28.4% decline over the past six months and 27.5% drop over the past year.
Among the 18 analysts covering the SRE stock, the consensus rating is a “Moderate Buy.” Its mean price target of $82.77 represents a 19.1% premium to current price levels.
