Is Sempra Stock Underperforming the Dow?
San Diego, California-based Sempra (SRE) operates as an energy infrastructure company in the United States and internationally. With a market cap of $50.1 billion, the company operates through Sempra California, Sempra Texas Utilities, and Sempra Infrastructure segments.
Companies worth $10 billion or more are typically referred to as "large-cap stocks." SRE fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the diversified utilities industry. Sempra benefits from having a massive customer base and offering electric services to approximately 3.6 million people and natural gas services to approximately 3.3 million people.
The company touched its all-time high of $95.77 on Nov. 25 last year and has fallen 19.8% from that peak. In the past three months, SRE stock has grown 10.4%, outperforming the Dow Jones Industrial Average’s ($DOWI) marginal uptick during the same time frame.
However, the stock’s performance looks bleaker over the longer term. SRE stock has grown 1.1% over the past 52 weeks but has declined 12.4% on a YTD basis, underperforming Dow’s 10% gains over the past year and a marginal rise in 2025.
SRE stock has been trading below its 200-day moving average since late February but above its 50-day moving average since late April, underscoring a trend reversal.
SRE stock declined marginally following the release of its mixed Q1 earnings on May 8. The company’s total revenues grew 4.5% year-over-year to $3.8 billion, driven by higher revenue contributions from the Natural Gas and Electric business units, but failed to meet the Street’s estimates. Moreover, its adjusted earnings rose 10.3% from the prior year’s quarter to $942 million. Sempra’s adjusted EPS grew 7.5% from its year-ago value to $1.44 and successfully beat the consensus estimates by 19%.
Its peer, The AES Corporation (AES), has lagged behind Sempra over the past year, with its shares declining 46.5% over the past 52 weeks and 15.4% in 2025.
Among the 18 analysts covering the SRE stock, the consensus rating is a “Moderate Buy.” Its mean price target of $82.17 suggests a modest 6.9% upside potential from 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.
