Stock Analysis | Sempra Outlook - Mixed Signals in Technicals and Strong Fundamentals

Market Snapshot

Takeaway: Sempra (SRE) shows technical neutrality with a mixed sentiment among analysts, while fundamental factors remain strong.

News Highlights

Recent headlines show varied activity in the utilities and financial sectors:

• May 28, 2025: Stryker tops list of West Michigan’s largest publicly traded companies with a 10.2% revenue increase. Though not directly about Sempra, the trend shows growing interest in strong revenue performances across industries.
• May 16, 2025: A report on Independent Bank (IBCP) signals a slowdown in loan growth and potential margin compression. This highlights a general cautious tone in the banking sector, which might influence related utilities.
• May 10, 2025: A review of dividend champions highlights consistent performers, suggesting that long-term value stocks may still be in favor—a potential positive for stable utilities like Sempra.

Analyst Views & Fundamentals

Average rating score: 3.00 (simple mean), and 3.33 as a performance-weighted rating. Analysts remain cautiously neutral, with one recent “Neutral” rating from Barclays. While there is no strong dispersion, there are also no strong bullish signals.

The recent price trend shows a 1.22% rise. This aligns with the neutral expectations, meaning that Sempra's current price movement matches analysts’ moderate forecasts.

Key fundamentals and model scores:

• Net assets per share growth rate: 1.31% (score: 7.21 internal diagnostic score).
• Net profit attributable to parent company shareholders: 95.06% of total net profit (score: 7.21).
• Inventory turnover ratio: 1.73 (score: 7.21).
• Interest coverage ratio (EBIT / Interest expense): 324.06% (score: 7.21).
• Diluted earnings per share growth rate: -12.18% (score: 7.21). While growth is negative, the score remains high, suggesting the drop may not be alarming.

Money-Flow Trends

Big-money and institutional flows are showing a positive trend, with the block flow ratio at 50.16% and a positive overall trend. Meanwhile, retail investors appear to be withdrawing slightly, with the Small_trend and Large_trend negative, though still close to neutral with inflow ratios of 48.61% and 49.15%, respectively.

This mixed flow pattern suggests that large investors remain confident, but smaller traders are uncertain or cautious.

Key Technical Signals

Sempra’s technical signals are mixed, with a technical score of 5.07 and a “Technical neutrality, mainly wait-and-see” outlook. Here are the recent signals and their internal diagnostic scores (0–10):

• Bullish Engulfing (August 29): Internal score: 7.59 — a strong bullish reversal pattern.
• WR Overbought (August 22): Internal score: 3.37 — indicating overbought conditions with limited upside.
• Marubozu White (August 19): Internal score: 3.37 — a long white candle showing strength but limited follow-through.
• WR Oversold (August 18 and 11): Internal score: 6.53 — suggesting previous bottoming signals, but now conflicting with recent overbought levels.
• MACD Death Cross (August 11): Internal score: 4.5 — a bearish signal that has not yet driven a strong downtrend.

Key insights: the market is in a volatile state with balanced long-short signals. Traders are advised to watch for a clearer breakout or breakdown.

Conclusion

Despite mixed technical signals, Sempra’s fundamentals and strong institutional inflows suggest a cautiously optimistic outlook. Investors may want to consider waiting for a pull-back before entering a long position, especially as technical indicators remain neutral. Keep an eye on the upcoming fundamental data releases and how the key technical patterns evolve in the coming weeks.