Stock Analysis | Sempra Outlook - Mixed Signals Emerge for SRE

Market Snapshot

Headline Takeaway: Sempra (SRE) faces a challenging technical outlook, with bearish indicators outnumbering bullish ones and a weak technical score of 4.64, suggesting caution for investors.

News Highlights

Recent news includes Stryker being named the largest publicly traded company in West Michigan with a 10.2% revenue increase, and SouthState Corporation filing an SEC Form S-3ASR. These developments highlight a mixed economic landscape that could influence Sempra's performance. Additionally, a recent article on dividend champions notes the importance of consistent payouts, a factor that Sempra has traditionally maintained.

Analyst Views & Fundamentals

The simple average rating from analysts is 3.00, while the performance-weighted rating is 1.65, reflecting a generally pessimistic view. There are notable differences in ratings, with Citigroup being the only active analyst and offering a "Neutral" rating in recent days.

• PE Ratio: 36.51 (internal diagnostic score: 0.45).
• Basic Earnings Per Share (YoY Growth %): -12.13% (internal diagnostic score: 0.05).
• Diluted Earnings Per Share (YoY Growth %): -12.18% (internal diagnostic score: 0.05).
• Cash-UP: -0.52 (internal diagnostic score: 0.27).
• Current Assets / Total Assets (%): 4.17% (internal diagnostic score: 0.01).

Money-Flow Trends

Money-flow trends show that while medium and large investor inflows remain positive, the overall trend is negative, with only 48.34% of funds showing an inflow. Small and extra-large investor inflow ratios are also negative, suggesting broader market caution. This indicates that big-money players are currently more bearish than bullish, which may signal a potential pull-back in the near term.

Key Technical Signals

Technically, SRE has an internal diagnostic score of 4.64, which indicates a weak technical outlook. The bearish signals, including a "MACD Death Cross" and "RSI Overbought" with scores of 2.32 and 3.68 respectively, outweigh the one bullish signal, "Bullish Engulfing" with a score of 7.7.

• WR Overbought: internal diagnostic score: 3.89.
• RSI Overbought: internal diagnostic score: 3.68.
• Bullish Engulfing: internal diagnostic score: 7.70.

Recent chart patterns include a "Bullish Engulfing" on July 31 and an "Earnings Release Date" on July 30, both of which are important to monitor for potential trend confirmation.

Conclusion

Actionable Takeaway: Given the weak technical signals and the bearish sentiment from analysts, investors may want to consider waiting for a pull-back before entering or adding to positions in Sempra. It's also a good idea to keep an eye on the earnings release date for any surprises that might influence the stock's direction.