Sempra (SRE), based in San Diego, California, operates as an energy infrastructure company. Valued at $59.8 billion by market cap, the company focuses on delivering sustainable energy to consumers, as well as invests in, develops, and operates transmission and distribution infrastructures.
Shares of this utility giant have underperformed the broader market over the past year. SRE has gained 20.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.3%. In 2026, SRE stock is up 3.7%, compared to the SPX’s 7.2% rise on a YTD basis.
Narrowing the focus, SRE’s outperformance is apparent compared to the State Street Utilities Select Sector SPDR ETF (XLU). The exchange-traded fund has gained about 11.8% over the past year. However, the ETF’s 5.7% gains on a YTD basis outshine the stock’s returns over the same time frame.
On May 7, SRE shares closed down more than 2% after reporting its Q1 results. Its adjusted EPS of $1.51 met Wall Street expectations. The company’s revenue was $3.7 billion, missing Wall Street forecasts of $4.1 billion. SRE expects full-year adjusted EPS in the range of $4.80 to $5.30.
For the current fiscal year, ending in December, analysts expect SRE’s EPS to grow 10% to $5.16 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 20 analysts covering SRE stock, the consensus is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”
This configuration is more bullish than a month ago, with 12 analysts suggesting a “Strong Buy.”
On May 4, Aidan Kelly from JPMorgan Chase & Co. (JPM) maintained a “Buy” rating on SRE, with a price target of $107, implying a potential upside of 16.9% from current levels.
The mean price target of $105.12 represents a 14.8% premium to SRE’s current price levels. The Street-high price target of $118 suggests an upside potential of 28.9%.
On the date of publication, Neha Panjwani 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.
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