Stock Analysis | Sempra Outlook - A Cautious Stance Amid Mixed Signals

Market Snapshot

Takeaway: Sempra’s technical indicators show a weak trend with bearish signals dominating, while recent price movement has risen 1.94%. Investors should be cautious.

News Highlights

Recent news involving Sempra includes:

• On May 28, 2025 - Stryker topped the list of West Michigan's largest publicly traded companies, showing mixed results for the region. This indirectly reflects the broader market environment but does not directly impact Sempra.
• On May 21, 2025 - SouthState Corporation filed an SEC Form S-3ASR. While this filing is unrelated to Sempra directly, it highlights ongoing regulatory activity among financial institutions, which may indirectly influence investor sentiment.
• On May 10, 2025 - A feature on dividend champions highlighted the importance of consistent payouts. Though not directly relevant to Sempra, it underscores the broader value of stability and earnings growth—qualities Sempra currently lacks in its fundamentals.

Analyst Views & Fundamentals

Average Rating Score (Simple Mean): 3.00

Weighted Rating Score (Performance-Weighted): 3.33

Rating Consistency: Analyst ratings are neutral but show dispersion, with only one recent “Neutral” rating from Barclays. The weighted expectations align with the recent price rise, but the overall consensus is not strongly positive.

Key fundamental factors and their model scores:

• Basic earnings per share (YoY growth rate %): -12.13% (score: 8.70)
• Interest coverage ratio (EBIT / Interest expense %): 324.06% (score: 8.00)
• Diluted earnings per share (YoY growth rate %): -12.18% (score: 8.00)
• Net profit attributable to parent company shareholders / Net profit %: 95.06% (score: 2.00)
• Profit-MV: 1.15 (score: 3.00)

While some fundamental factors show strength, the earnings growth is declining sharply, creating a mixed fundamental picture.

Money-Flow Trends

The fund-flow data indicates a negative trend across all investor categories, with inflow ratios just below 50%. Large and extra-large investors are particularly cautious, with inflow ratios at 48.59% and 49.62%, respectively. These numbers suggest that big-money players are not aggressively accumulating shares, while retail investors are also showing hesitation. This could indicate ongoing uncertainty about the company’s near-term direction.

Fund Flow Score: 7.88 (internal diagnostic score, good). Despite the negative trend, the overall score remains relatively high, suggesting that while there is caution, it is not overly bearish.

Key Technical Signals

The recent 5-day technical analysis shows a weak trend with bearish indicators dominating (2 vs. 0 bullish signals). The key indicators and their internal diagnostic scores (0-10) include:

• Marubozu White: 3.37 (internal diagnostic score) - A neutral signal that suggests a potential reversal but with weak conviction.
• WR Overbought: 3.25 (internal diagnostic score) - This signal suggests caution as the stock may be overbought.
• WR Oversold: 6.53 (internal diagnostic score) - A bullish signal, though it has historically yielded mixed results.
• Bullish Engulfing: 6.98 (internal diagnostic score) - A strong bullish pattern that appeared on August 29, 2025, but it was not followed by strong confirmation.
• MACD Death Cross: 4.50 (internal diagnostic score) - A bearish signal indicating a potential trend reversal.

Recent chart patterns include:

• August 29, 2025: A Bullish Engulfing pattern appeared, which is a strong reversal signal.
• August 22, 2025: WR Overbought condition was noted, indicating the stock might be overbought.

The overall momentum is weak, and the chart lacks a clear direction. Investors should monitor whether the Bullish Engulfing pattern can hold and whether WR Overbought conditions reverse into oversold territory.

Conclusion

Sempra is showing mixed signals across fundamentals, technicals, and money flows. While the fund-flow score is relatively high at 7.88 (internal diagnostic score), the technical indicators suggest caution with a weak trend. The bearish signals outnumber the bullish ones, and earnings growth is declining. Investors are advised to consider waiting for a pull-back or a clearer reversal signal before entering a position. Keep an eye on upcoming earnings and any follow-up on the recent Bullish Engulfing pattern for potential turning points.