Sempra Energy (NYSE:SRE) stock has reached a new 52-week high, touching $84.28, as the company continues to exhibit strong performance. This new peak reflects a significant uptrend for the energy services provider, with a notable 1-year change showing an impressive 15.25% increase. Investors have shown increased confidence in Sempra Energy's market position and growth prospects, contributing to the stock's upward trajectory and its latest achievement in the trading year.
In other recent news, Sempra Energy has been the focus of several analyst firms. Mizuho Securities reiterated an Outperform rating for Sempra, highlighting the company's confidence in navigating the impacts of the delayed Energía Costa Azul (ECA) liquefied natural gas project and recent changes to the Cost of Capital framework. BMO Capital Markets also maintained an Outperform rating, despite proposed regulatory changes that could affect the return on equity for California utilities. BofA Securities initiated coverage on Sempra with a Buy rating, emphasizing the company's utility-focused capital plans and the potential for future investment opportunities in LNG projects.
Sempra's management has also been busy with the System Reliability Plan for Oncor, a Texas-based electric utility in which Sempra holds a significant interest. The approval of this plan could signal a positive trend for Oncor within the broader energy market. In addition, Sempra's 40% stake in the Permian Highway Pipeline project, projected to cost between $13 and $15 billion, could present further capital opportunities extending through 2038.
Sempra also reported strong earnings for the second quarter of 2024, with an adjusted EPS of $0.89. The company reaffirmed its full-year 2024 adjusted EPS guidance range. However, there was a change in the board with the resignation of director Bethany J. Mayer. Furthermore, Sempra's subsidiary, Southern California Gas Company, issued $600 million in First Mortgage Bonds, contributing to the company's broader financial strategy.
In addition to these developments, Sempra's ECA LNG Phase 1 project has been delayed until spring 2026 due to labor and productivity challenges. Despite this, Sempra continues to expand its influence in Texas's energy infrastructure development, with Oncor's five-year capital plan set at $24 billion. These are the recent developments involving Sempra Energy.
InvestingPro Insights
As Sempra Energy (SRE) celebrates its new 52-week high, a glance at the InvestingPro platform reveals additional insights that might interest investors. With a market capitalization of $53.34 billion and a P/E ratio of 17.92, the company presents a stable investment profile. Notably, the stock is trading at a low P/E ratio relative to its near-term earnings growth, indicating potential for value investors. Additionally, Sempra has demonstrated a commitment to shareholder returns, raising its dividend for 13 consecutive years and maintaining payments for 27 years, a testament to its financial resilience.
Analyzing recent performance, the company's revenue for the last twelve months as of Q2 2024 stands at $13.48 billion, despite a decline of 20.58% in revenue growth. However, the gross profit margin remains robust at 37.84%, showcasing efficient operations. Furthermore, with analysts revising their earnings upwards for the upcoming period and predicting profitability this year, Sempra Energy's outlook is optimistic. The company's stock generally trades with low price volatility, making it an attractive option for risk-averse investors.
For those seeking more in-depth analysis, InvestingPro offers a wealth of additional tips, including insights on the company's financial health and future performance projections. Discover these expert insights and more at InvestingPro.
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