SRE stock: buy or sell?
Updated on:
October 18th, 2019
4
Sempra Energy, together with its subsidiaries, engages in energy business worldwide. The company's San Diego Gas & Electric Company segment transmits and distributes electricity and\u002For natural gas.
Should I buy SRE stock?
Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.Currently, Sempra Energy stock doesn't match any of these trading strategies, so our recommendation is not to buy.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Sempra Energy stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.
At Stocks2.com, we gathered 15 ratings published for SRE stock in the last month. The general sentiment of these ratings is bullish for SRE stock, with 9 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-9-6 | UBS Group | n/a | Buy |
| 2019-9-30 | Wells Fargo & Co | n/a | Outperform |
| 2019-9-24 | Argus | n/a | Buy |
| 2019-9-2 | Peel Hunt | n/a | Buy |
| 2019-9-17 | Peel Hunt | n/a | Buy |
| 2019-9-10 | Peel Hunt | n/a | Buy |
| 2019-8-27 | Peel Hunt | n/a | Buy |
| 2019-8-16 | Morgan Stanley | n/a | Equal Weight |
| 2019-8-13 | Barclays | n/a | Equal Weight |
| 2019-6-27 | Bank of America | Buy | Neutral |
| 2019-5-23 | Morgan Stanley | n/a | Hold |
| 2019-5-16 | Morgan Stanley | n/a | Equal Weight |
| 2019-4-15 | Wells Fargo & Co | Outperform | Outperform |
| 2019-3-28 | Wells Fargo & Co | n/a | Outperform |
| 2019-3-28 | Morgan Stanley | n/a | Hold |
SRE stock analysis
Daily outlook
Sempra Energy shares appreciated 0.88% to $146.23 on October 18th.
Shares of Sempra Energy appreciated a slightly fine 0.88% and closed at $146.23. On Sep/30, SRE hit new all time highs, pushing higher previous ATH of $145.08 recorded on Sep/26. New ATHs are usual entry points for many trading setups as there aren't higher resistences. Since August when SRE stock price broke up the SMA50d line, it gained $10.42 (7.67%).
Weekly outlook
Shares of Sempra Energy inched a tiny 0.51% this week.
Sempra Energy stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last all-time high Sempra Energy marked late September. Early January SRE price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Since late February when SMA10w and SMA20w crossed up, SRE price gained $30.30 per share (26.14%).
SRE stock price history
SRE stock went public on June 29th, 1998 with a price of $12.831. Since then, SRE stock surged a 1,039.80%, with an average of 49.50% per year. If you had invested right after SRE's IPO a $1,000 in SRE stock in 1998, it would worth $10,398.00 today.
1: Adjusted price after possible price splits or reverse-splits.
SRE stock historical price chart
SRE stock reached all-time highs on Sep 30th with a price of $148.14.
SRE stock price target is $144.70
Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We detected 10 price forecasts for SRE stock published in the last 30 days:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-9-6 | UBS Group | Raises Target | $156.00 | $162.00 | 3.8% |
| 2019-9-30 | Wells Fargo & Co | Raises Target | $153.00 | $161.00 | 5.2% |
| 2019-9-24 | Argus | Raises Target | n/a | $156.00 | - |
| 2019-8-16 | Morgan Stanley | Lowers Target | $144.00 | $141.00 | -2.1% |
| 2019-8-13 | Barclays | Initiates | n/a | $142.00 | - |
| 2019-5-23 | Morgan Stanley | Set Price Target | $132.00 | $142.00 | 7.6% |
| 2019-5-16 | Morgan Stanley | Raises Target | $131.00 | $132.00 | 0.8% |
| 2019-4-15 | Wells Fargo & Co | Raises Target | $137.00 | $140.00 | 2.2% |
| 2019-3-28 | Wells Fargo & Co | Reiterates | $130.00 | $137.00 | 5.4% |
| 2019-3-28 | Morgan Stanley | Reiterates | n/a | $134.00 | - |
| (in average) | $140.40 | $144.70 | 3.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
Sempra Energy reported decent results for 2018-Q4 on February. Sempra Energy gained Earnings per Share (EPS) by 6.10%, beating experts of $1.47. Sempra Energy posted $1.56.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q1 | - | n/a | 1.75 | n/a |
| 2017-Q2 | - | n/a | 1.19 | n/a |
| 2017-Q3 | 2017-10-30 | 1.05 | 1.04 | -1.0% |
| 2017-Q4 | 2018-02-27 | 1.4 | 1.54 | 10.0% |
| 2018-Q1 | 2018-05-07 | 1.67 | 1.43 | -14.4% |
| 2018-Q2 | 2018-08-06 | 1.17 | 1.35 | 15.4% |
| 2018-Q3 | 2018-11-07 | 1.13 | 1.23 | 8.8% |
| 2018-Q4 | 2019-02-26 | 1.47 | 1.56 | 6.1% |
| 2019-Q1 | - | n/a | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
Annual financial results
In 2018, Sempra Energy annual revenues appreciated a nice 4.28% to $11,687.00 M dollars from $11,207.00 marked in 2017. When comparing 2018 vs 2017, in line, profit margin (that is, the net income divided by revenues) rose a 6.69% to 8.98%.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $10,560 M | - | $1,010 M9.6% | - |
| 2014 | $11,035 M | 4.50% | $1,162 M10.5% | 15.05% |
| 2015 | $10,231 M | -7.29% | $1,350 M13.2% | 16.18% |
| 2016 | $10,183 M | -0.47% | $1,371 M13.5% | 1.56% |
| 2017 | $11,207 M | 10.06% | $257 M2.3% | -81.25% |
| 2018 | $11,687 M | 4.28% | $1,050 M9.0% | 308.56% |
Quarterly financial results
Sempra Energy posted $3,221.00 M in revenues for 2018-Q4, a 9.56% improvement compared to previous quarter. Reported quarter income marked $900.00 million with a profit margin of 27.94%. Profit margin climbed a 17.40% compared to previous quarter when profit margin was 10.54%. When comparing sales to same quarter last year, Sempra Energy sales marked a very good gain and escalated a 8.67%. Looking back to recent quarterly results, Sempra Energy posted 2 negative quarters in a row.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q1 | $3,030 M | - | $441 M14.6% | - |
| 2017-Q2 | $2,520 M | -16.83% | $260 M10.3% | -41.04% |
| 2017-Q3 | $2,679 M | 6.31% | $57 M2.1% | -78.08% |
| 2017-Q4 | $2,964 M | 10.64% | $-501 M-16.9% | -978.95% |
| 2018-Q1 | $2,962 M | -0.07% | $375 M12.7% | -174.85% |
| 2018-Q2 | $2,564 M | -13.44% | $-535 M-20.9% | -242.67% |
| 2018-Q3 | $2,940 M | 14.66% | $310 M10.5% | -157.94% |
| 2018-Q4 | $3,221 M | 9.56% | $900 M27.9% | 190.32% |
Sempra Energy ownership
When you are planning to buy a stock, it's always worth to overview its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Sempra Energy, 0.15% of all outstanding shares are owned by its staff.
Bearish positions for SRE stock account 0.00%, no big difference from last month.
For a better context understanding, the next table shows ownership data compared to other related stocks:
| SRE | D | MDU | NEE | NI | |
|---|---|---|---|---|---|
| Market cap | $40.1 B | $66.0 B | $5.5 B | $113.6 B | $10.4 B |
| Total shares | 274.6 M | 803.4 M | 199.1 M | 488.8 M | 373.4 M |
| Float shares | 274.0 M | 800.7 M | 196.8 M | 477.8 M | 371.5 M |
| - Institutional holdings (%) | 99.4% | 60.2% | 68.4% | 79.2% | 95.3% |
| - Insider holdings (%) | 0.1% | 0.3% | 1.1% | 0.2% | 0.4% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
SRE summary
| Friday, October 18th, 2019 | |
|---|---|
| Open | $144.99 |
| Close | $146.23 |
| Day range | $144.63 - $146.93 |
| Previous close | $144.96 |
| Session gain | 0.88% |
| Average true range | $1.81 |
| 50d mov avg | $142.10 |
| 100d mov avg | $139.01 |
| 200d mov avg | $129.63 |
| Daily pattern | |
| Weekly pattern | lt06a |
Sempra Energy performance
To better understand Sempra Energy performance you must becnhmark its gains with other related stocks in same sector or industry. In the following table, we compare Sempra Energy performance to Dominion Energy, MDU Resources, NextEra Energy, NiSource, Pacific Gas & Electric, Southwest Gas and UGI:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| SRE | 5.14% | 16.39% | 29.24% |
| DDominion Energy | 8.16% | 12.27% | 17.17% |
| MDUMDU Resources | 6.30% | 9.76% | 9.33% |
| NEENextEra Energy | 11.47% | 24.24% | 37.39% |
| NINiSource | -3.52% | 2.94% | 13.42% |
| PCGPacific Gas & Ele... | -56.38% | -63.05% | -84.11% |
| SWXSouthwest Gas | 0.73% | 9.85% | 13.66% |
| UGI | -3.54% | -7.12% | -12.05% |
Sempra Energy competitors
One check before trading any stock is to have a look a list of its competitors, in this case for Sempra Energy. We selected 7 companies as Sempra Energy competitors as they are in the same industry or have similar market objectives.- Dominion Energy (D)
- MDU Resources (MDU)
- NextEra Energy (NEE)
- NiSource (NI)
- Pacific Gas & Electric (PCG)
- Southwest Gas (SWX)
- UGI (UGI)
Latest SRE stock news
- Seeking AlphaSempra Energy Is At An All-Time High, But There's Further UpsideFebruary 27, 2019
- InvestorPlace3 Big Stock Charts for Wednesday: Cabot Oil & Gas, Incyte and Sempra EnergyFebruary 27, 2019