Sempra Energy (SRE) Soars 1.05% Ahead of Earnings Report

Sempra Energy (SRE) shares surged 1.05% today, reaching their highest level since February 2025 with an intraday gain of 1.64%.

The strategy of buying SRE shares after they reached a recent high and holding for 1 week resulted in a 1.36% return over the past five years, significantly underperforming the benchmark return of 41.68%. The strategy's Sharpe ratio was 0.25, indicating modest risk-adjusted returns, with a maximum drawdown of -2.86% and a volatility of 2.32%.

Sempra Energy is set to release its first-quarter 2025 earnings report on May 8, which is anticipated to significantly influence the stock's movement. The company's previous earnings report had a negative surprise of 7%, which could set the tone for investor expectations.

Goldman Sachs recently downgraded Sempra from a "buy" to a "neutral" rating and reduced their target price from $99.00 to $76.00. This change in rating could negatively affect investor sentiment and potentially impact the stock price.

Analysts have forecasted that Sempra's earnings per share for the first quarter of 2025 will be $1.21, indicating a 9.70% decrease compared to the previous year. However, there is an expectation of a rise in quarterly revenue for the period ending March 31, 2025, which could provide some balance to the earnings outlook.