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Sempra Energy (SRE)

Sempra Energy stock forecast: buy or sell

Close on Oct 23rd, 2020
$133.86 +1.19%
3 months performance
10.60%
Published: October 23rd, 2020 - 6.11pm EDT

Sempra Energy stock outlook

  • Sempra Energy closed today at $133.86 after inching a 1.19%.
  • The price is currently above the upper Bollinger band, which usually indicates a short-term correction
  • The stock is configuring an uptrend pattern since late June, when it bottomed at $111.14. Up to date, the uptrend marked a 20.44% gain since the beginning of this rally
  • Morgan Stanley published a hold rating for Sempra Energy on Tuesday, with a target of $147.00
  • Sempra Energy operates as an energy-services holding company in the United States and internationally.

Please read:
The comments contained in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have any knowledge of the particular positions of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are published for informational purposes only

Sempra Energy stock charts

Should I buy Sempra Energy stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $SRE stock a buy?

Currently, Sempra Energy stock matches one trading strategy:

Uptrend buy setup

Sempra Energy stock is in an uptrend since in late June that so far marked an amazing 20% gain. Price marked a local bottom in this uptrend at $112.33 in late September, and since then it bounced off a 19.17%. Breaking out over $133.89 - it's last top - will be a good entry point if Sempra Energy resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $120.50

Buy setupBuy pointStop lossRisk
Uptrend buy setup$133.89$120.5010%

Should I sell Sempra Energy stock?

When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the good moment to sell and get your profits. In the same way as when we have to buy shares, choosing when is the best time to sell is not a random decision, and we must follow our own trading strategy. When selling, as well as buying, our strategies are very easy to follow but are only valid for selling shares you already own, not for shorting $SRE stock

As a rule of thumb, you must never mantain an investment that produces losses greater than those expected by the time of purchase. The timing to sell shares always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Sempra Energy stock?

In the current situation of Sempra Energy there is not any eligible sell setup, so Sempra Energy stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell Sempra Energy stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 2 analyst ratings were published for Sempra Energy

Sempra Energy ratings

Brokerage firmRating
Oct 19th, 2020
KeyCorp Buy
Oct 20th, 2020
Morgan Stanley

Technical analysis

Sempra Energy stock started an uptrend in late June, and gained an amazing 20.44%. The chart shows higher tops and bottoms, and along the way gave very few buy points for those who wanted to invest. Latest low was in late September, when price bounced at $112.33. Like in all uptrends, price needs to take breath and now price is consolidating the gains in a range between $133.89 and $112.33

SMAs overview

Moving averages are simple indicators for investors to detect stock momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

SRE SMAs chart

Supports and resistances

Investors use support and resistance levels as a way to spot price points in the stock price action that may work as glass ceiling, preventing the price of shares to move up or down. Supports are levels where the price may stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it is likely to continue descending until approaching another support level. In contrast, a resistance level is where the price tends to find opposition as it rises. Likewise, the price is more likely to "rebound" at this level, and if it finally crosses this level, the price will climb easily until it approaches the next resistance

The current resistance levels are:

  • R1: $133.89 (0.02% above)
  • R2: $134.31 (0.34% above)
  • R3: $135.14 (0.96% above)
  • The current support levels are:

  • S1: $133.66 (-0.15% below)
  • S2: $130.78 (-2.3% below)
  • S3: $128.37 (-4.1% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. Fundamentally, the Bollinger Bands are lines that flow around a centralmoving average, varying the distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Price readings above or below the Bollinger Bands signal that the price has has trended strongly to extreme upward or downward values. For this case, the price is beyond the upper band, which should mean a short-term adjustment (at least) until it is under the band

    SRE RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price changes to identify when the share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by stock traders

    Relative Strength Indicator (RSI) broke through the 70 level today, with a value of 74.06. The fact that the Relative Strength Indicator (RSI) value is in the overbought zone does not imply a sell point, as stocks can be above the level of 70 for many, many weeks and continue to climb

    SRE RSI chart

    Earnings and financials

    In early August, Sempra Energy ($SRE) posted adjusted EPS for FQ2 that slightly beat analysts' expectations. Quarterly EPS was $1.65 per share vs the estimates of $1.50. This quarterly report means an earnings surprise of 10%.

    By comparison, the EPS for the same quarter last year was $1.10, so posted EPS is a improvement of 50%.

    Sempra Energy ($SRE) is hosting the earnings call on Thursday next week. Forecasted per-share earnings for this quarter is $1.48, compared to $1.65 that was reported for Q2.

    SRE revenues and profits chart