SRE Stock Analysis — Sempra Energy
Sector: Utilities
AI Verdict
Sempra trades at 17.4x next year's earnings for 84.8% expected EPS growth — that's cheap for the growth on offer if its regulated utility moat keeps delivering, but the high RSI means short-term buyers risk a pullback.
Competitive Moat
Sempra Energy owns and operates regulated utility infrastructure across California and Texas, benefiting from stable, monopoly-like local markets. Its moat comes from regulatory barriers and high capital requirements, making it difficult for new entrants to compete in its core service territories.
Summary
Sempra is notable for its sharp forecasted earnings jump, with analysts expecting 84.8% EPS growth over the next year.
Where It Stands
Sempra has delivered a 26.33% 1-year return, trades at 17.4x forward earnings (below the utility sector median of 18x), but its RSI of 68.5 signals elevated pullback risk.
Key Metrics
- RSI: 68.5 — Near Overbought
- Trailing P/E: 32.1x
- Forward P/E: 17.4x
- PEG Ratio: 0.38
- Earnings Growth: +0.8%
- Revenue Growth: +0.0%
- Market Cap: $61.4B
- Dividend Yield: 0.03%
- 1-Year Return: 26.33%
- 52-Week High: $101.04
- 52-Week Low: $73.18
Analyst Consensus
18 Buy · 6 Hold · 0 Sell (24 analysts)
Bull Case
With forward EPS growth expected at 84.8% and a forward P/E of 17.4x, you're paying a below-sector-median multiple for a rare utility growth spurt.
Bear Case
The RSI of 68.5 means Sempra is at elevated risk of a technical pullback, and a drop to a sector-median P/E would cut about 2.2 turns off the multiple.
Catalyst to Watch
Watch for quarterly earnings updates to confirm whether the forecasted 84.8% EPS growth is materializing.