Is Sempra Stock Underperforming the Nasdaq?
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.
On the date of publication, Aditya Sarawgi 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.