Sempra Outlook - A Wait-and-See Strategy Amid Mixed Signals

1. Market Snapshot

Takeaway: Sempra (SRE) is currently in a technically neutral phase, with analysts and market activity suggesting caution ahead of a clear trend.

The stock has seen a recent price rise of 1.67%, but technical indicators suggest a wait-and-see approach, as the market remains in a volatile, directionless state. Our internal diagnostic score for technical analysis is 5.22.

2. News Highlights

Sempra’s recent news highlights include:

• May 28, 2025: Stryker tops list of West Michigan’s largest publicly traded companies – While not directly related to Sempra, the broader market context suggests a mixed performance among large publicly traded firms in the region.
• May 27, 2025: What Makes Independent Bank (IBCP) a New Buy Stock – This article highlights upgrades in regional banks, potentially indicating a favorable environment for utility and energy-related firms like Sempra.
• May 10, 2025: Dividend Champion Highlights – Dividend champions are often viewed as stable investments, and Sempra is a consistent dividend payer. This could reinforce its appeal for income-focused investors.

3. Analyst Views & Fundamentals

Sempra’s recent analyst activity shows a simple average rating of 3.00 and a historical performance-weighted score of 3.33. These scores suggest a relatively neutral stance from analysts, with a slight tilt toward cautious optimism.

Analyst ratings are mixed — “there are differences” — though the current price rise does align with the weighted expectations. The lone recent analyst, Nicholas Campanella from Barclays, gave a neutral rating on August 26, 2025.

Key Fundamental Factors

• Net assets per share (growth rate): 1.31% – Internal diagnostic score: 6.99 (strong positive)
• EV/EBIT: 48.23 – Internal diagnostic score: 6.99 (positive)
• Basic EPS growth (YoY): -12.13% – Internal diagnostic score: 6.99 (mildly positive)
• Diluted EPS growth (YoY): -12.18% – Internal diagnostic score: 6.99 (mildly positive)
• Net profit growth (YoY): -9.71% – Internal diagnostic score: 6.99 (mildly positive)

These values suggest that Sempra is maintaining a relatively stable financial position despite weaker earnings growth, supported by strong equity and enterprise value metrics.

4. Money-Flow Trends

The recent money-flow analysis indicates a negative overall trend for SRE, with inflow ratios across all investor categories below 50% — the neutral threshold. Specifically:

• Small investors: 48.67% inflow
• Medium investors: 48.72% inflow
• Large investors: 48.83% inflow
• Extra-large investors: 48.92% inflow

Our internal diagnostic score for fund flow is 7.73 (good), suggesting strong underlying conviction among major players, even as retail and smaller investors show caution.

5. Key Technical Signals

Technical indicators for Sempra over the last five days show a mix of signals, with some positive and some negative patterns:

• Bullish Engulfing – Internal diagnostic score: 7.59 (strongly bullish)
• WR Overbought – Internal diagnostic score: 3.37 (neutral bias)
• Marubozu White – Internal diagnostic score: 3.37 (neutral bias)
• WR Oversold – Internal diagnostic score: 6.53 (bullish bias)

Recent chart patterns include a Bullish Engulfing on August 29 and a Marubozu White on September 9 — both suggesting potential volatility or indecision in the market. Our technical analysis suggests “technical neutrality, mainly wait-and-see”, with no strong signals to commit to a directional trade.

6. Conclusion

Given the mixed signals and cautious analyst ratings, investors may want to consider waiting for a pull-back or clearer breakout before entering new positions. Sempra’s strong equity and enterprise value fundamentals are a positive, but the earnings decline and technical neutrality suggest caution.

Key takeaways:

• Our internal diagnostic score for fundamentals is 6.99, indicating a solid but not overvalued stock.
• Fund-flow score is 7.73 (good), indicating strong conviction from major investors.
• Technical indicators are mixed, with a score of 5.22 and no strong directional bias.

Stay tuned for upcoming earnings and watch for a more defined technical breakout — for now, patience is key.