Stock Analysis | Sempra Outlook - Mixed Signals Amid Rising Earnings and Divergent Analyst Views

Market Snapshot

Headline Takeaway: Sempra (SRE) is showing strong earnings growth but faces a mixed technical outlook with more bearish indicators, while recent renewable energy news could drive sector interest.

The stock has risen by 3.77% recently, but our internal diagnostic score for technical strength is 4.47, indicating a weak trend that traders should approach with caution.

News Highlights

Recent developments in the energy sector and Sempra's core utilities space are worth noting:

• Burger King and Iberdrola Renewable PPA - A new agreement to supply 1,900 GWh of renewable electricity could hint at growing demand for utility infrastructure and green energy partnerships, potentially benefiting Sempra as a player in the space.
• Egypt’s AOI Launches High-Voltage Production Line - The Arab Organization for Industrialization is expanding its capacity in high-voltage electricity infrastructure. This highlights the global push for stronger energy infrastructure, which aligns with Sempra's business scope.
• Utilities Sector Earnings Beat - This week, 11 out of 17 utility stocks beat earnings, a positive backdrop for Sempra as it continues to grow its earnings per share and net profits.

Analyst Views & Fundamentals

Analysts are divided on Sempra, with only one recent rating issued by Citigroup’s Ryan Levine labeling it “Neutral.” Here's a breakdown:

• Average (Simple) Rating Score: 3.00
• Performance-Weighted Rating Score: 1.65
• Rating Consistency: Dispersed, with no clear consensus from analysts.
• Price Trend vs. Analyst Expectations: The stock is currently up 3.77%, diverging from the generally bearish weighted market expectation.

Key Fundamentals (with internal diagnostic scores):

• Basic Earnings Per Share (YoY Growth Rate %): 9.45% (internal score: 7.44)
• Diluted Earnings Per Share (YoY Growth Rate %): 10.32% (internal score: 7.44)
• Rate of Return on Total Assets (%): 1.41% (internal score: 6.40)
• Annualized Return on Total Assets (%): 5.64% (internal score: 6.40)
• Inventory Turnover Ratio: 1.18 (internal score: 5.56)

Money-Flow Trends

Big-money players are showing a negative trend in inflows, while retail (small) investors are positive. This divergence can create short-term volatility as institutional and retail positions clash:

• Small Inflows: 50.47% positive
• Large/Extra-Large Inflows: Only 49.31% and 47.38% positive, respectively
• Fund Flow Score: 7.66 (internal score: "good")

This suggests that while retail investors are optimistic, larger players are taking a cautious or even bearish stance.

Key Technical Signals

Technically, Sempra is in a mixed state with 1 bullish and 3 bearish indicators over the past five days. Here’s a breakdown of the key signals:

• Williams %R Overbought (score: 3.92) – Suggests overbought conditions, though not strongly bearish.
• RSI Overbought (score: 3.33) – A clear warning of overbought territory and potential pull-backs.
• Marubozu White (score: 3.53) – A bearish reversal pattern indicating strong selling pressure after an uptrend.
• Bullish Engulfing (score: 7.09) – One of the few positive signs, indicating a potential reversal to the upside.

Recent Chart Patterns (by date):

• 2025-07-31: WR Overbought, RSI Overbought, Bullish Engulfing, Marubozu White
• 2025-07-30: WR Overbought, RSI Overbought
• 2025-07-28: WR Overbought

These mixed signals suggest a weak trend with no clear direction, and investors should remain cautious as the market may consolidate for some time before breaking out.

Conclusion

Actionable Takeaway: With a technical score of 4.47, mixed analyst ratings, and diverging money flows, Sempra appears at a crossroads. While earnings are growing and retail sentiment is positive, the chart and institutional signals suggest caution.

Consider waiting for a clearer breakout or a pull-back before committing new capital, and keep a close eye on upcoming earnings to confirm the fundamental strength that’s already showing in per-share metrics.