Sempra (SRE), founded in 1996 and headquartered in San Diego, California, is a prominent energy infrastructure company dedicated to delivering sustainable energy solutions. With a market cap of $55.4 billion, Sempra focuses on developing, operating, and maintaining critical infrastructure that supports natural gas and electric energy delivery.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” Sempra is a strong contender within this category. Known for its financial stability and strategic focus on energy infrastructure, Sempra excels in delivering natural gas and electric energy solutions. Its extensive network of infrastructure, coupled with a commitment to sustainability and investments in clean energy technologies, underscores its leadership in advancing reliable and sustainable energy systems across North America.
Sempra's shares are currently trading 8.2% below its 52-week high of $95.77, reached on Nov. 25. The stock has gained 7.6% over the three months, underperforming the broader S&P 500 Index ($SPX) 8.1% gains during the same time frame.
Over the longer term, SRE has posted a YTD gain of 17.7%, trailing the SPX’s return of 26.9%. Similarly, over the past 52 weeks, SRE achieved a 19.1% increase, underperforming the SPX’s impressive 30.3% growth during the same timeframe.
SRE has traded above its 50-day moving average with a few fluctuations but dipped below the mark recently, signaling a bearish trend. However, it has remained above its 200-day moving average since late April.
Sempra's shares rose 7.3% on Nov. 6, despite delivering weaker-than-expected Q3 results. The company reported adjusted earnings of $566 million, $0.89 per diluted share for the quarter, a decline from $685 million, $1.08 per diluted share in Q3 2023. Sempra updated its 2024 adjusted EPS guidance of $4.60 to $4.90 for the same period. Additionally, the company maintains its 2025 EPS guidance range of $4.90 to $5.25.
To support future financing needs, Sempra announced a $3 billion at-the-market (ATM) equity offering program. It reaffirmed its long-term EPS growth target of 6% to 8%, reflecting confidence in its strategic trajectory.
Sempra has underperformed its competitor, Ameren Corporation (AEE), which has reported a 24.1% gain on a YTD basis.
Although SRE is underperforming the broader sector, analysts remain optimistic about the stock's prospects. Of the 18 analysts covering it, the consensus rating is “Strong Buy,” with a mean price target of $95, indicating a potential upside of 8% from its current level.
