Sempra Energy’s Stock Performance: A Mixed Bag in 2023
Company Overview: Sempra (SRE), established in 1996 and based in San Diego, California, is a key player in energy infrastructure. The firm is committed to providing sustainable energy solutions and has a market cap of $55.4 billion. Sempra specializes in the development, operation, and maintenance of vital infrastructure for natural gas and electric energy delivery.
As a large-cap stock, with a market value exceeding $10 billion, Sempra is recognized for its robust financial foundation and focus on energy infrastructure. Their extensive infrastructure network and commitment to sustainability highlight their role in creating reliable energy systems throughout North America.
Current Stock Performance
Sempra’s shares are presently trading at 8.2% below their 52-week high of $95.77, achieved on November 25. Over the last three months, the stock has gained 7.6%, which is slightly less than the broader S&P 500 Index’s ($SPX) 8.1% growth in the same period.
On a broader scale, SRE has shown a year-to-date gain of 17.7%, falling short of the SPX’s return of 26.9%. Additionally, in the past 52 weeks, SRE has recorded a 19.1% increase, which is also behind the SPX’s substantial 30.3% growth.
Technical Analysis
Recently, SRE has occasionally dipped below its 50-day moving average, indicating a bearish trend, although it has consistently remained above its 200-day moving average since late April.
Quarterly Earnings and Future Plans
On November 6, despite weaker-than-anticipated Q3 results, Sempra’s shares increased by 7.3%. The company disclosed adjusted earnings of $566 million, or $0.89 per diluted share for the quarter, a decrease from $685 million and $1.08 in Q3 2022. Sempra also updated its adjusted EPS guidance for 2024 to a range of $4.60 to $4.90 while maintaining its forecast for 2025 EPS at $4.90 to $5.25.
To aid its financing needs moving forward, Sempra has initiated a $3 billion at-the-market (ATM) equity offering program. The company remains committed to a long-term EPS growth target of 6% to 8%, which reflects its strategic focus.
Comparison with Competitors and Analyst Outlook
In comparison, Sempra has underperformed Ameren Corporation (AEE), which has achieved a YTD gain of 24.1%. Despite SRE lagging behind in performance, analysts maintain a positive outlook. Among the 18 analysts covering Sempra, the consensus rating is “Strong Buy,” with an average price target of $95, suggesting an upside potential of 8% from the current level.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
