Sempra (NYSE:SRE) is one of the stocks Jim Cramer recently talked about. Answering a caller’s query during the lightning round, Cramer remarked: “Jeff Martin pulled it off. You know, he missed the quarter real bad, and I was worried. I said, Jeff, you know, I don’t know. I was going to put it in the book. I felt like wow… It came right back. He’s done a great job.” Sempra (NYSE:SRE) develops and operates energy infrastructure, providing natural gas and electric services through regulated utilities and ...

Core Insights - The utility sector is viewed as undervalued compared to its growth opportunities, with strong demand driven by infrastructure needs and economic growth [3][4] - Sempra Energy and Constellation Energy are highlighted as top utility stock picks, with positive growth outlooks and strategic initiatives [2][19] Sempra Energy - Sempra Energy operates in California and Texas, serving approximately 40 million customers with total assets nearing $100 billion [1] - The company has three main divisions: Sempra California, Sempra Texas, and Sempra Infrastructure, focusing on grid resiliency and renewable energy integration [7][9] - Recent strategic actions include the sale of 45% of Sempra Infrastructure Partners to KKR for $10 billion, expected to close mid-next year [10] - For Q2 2025, Sempra reported revenue of $3 billion, flat year-over-year, and a non-GAAP EPS of 89 cents, beating forecasts by 4 cents [11][12] - Analyst Pourreza rates Sempra as Overweight with a price target of $115, indicating a potential upside of 24% [14] Constellation Energy - Constellation Energy is a leader in the US carbon-free power market, with over 32,400 megawatts of capacity, 90% of which is carbon-free [15][16] - The company is expanding through strategic acquisitions, including the $16.4 billion acquisition of Calpine, expected to close by year-end [17] - Constellation reported $6.1 billion in revenue for Q2 2025, an 11.5% increase year-over-year, with earnings of $1.91 per share, exceeding expectations [19] - Analyst Pourreza gives Constellation an Overweight rating with a price target of $478, suggesting a 24% gain potential [21]

Group 1: Sempra - Sempra is recommended as a buy by Jim Cramer, supported by Wells Fargo analyst Shahriar Pourreza who initiated coverage with an Overweight rating and a price target of $115 [1] Group 2: Pfizer - Pfizer announced initial results from the HER2CLIMB-05 clinical trial for a new treatment for metastatic breast cancer (MBC) positive for HER2 [1] - Pfizer shares fell 1.1% to settle at $24.50 [6] Group 3: Dow Inc. - Dow reported a lower-than-expected third-quarter loss, with an adjusted loss of 19 cents per share, beating the projected 29-cent loss [2] - Revenue for Dow fell 8% year over year to $9.97 billion, missing the estimate of $10.23 billion [2] - Dow shares fell 1.4% to close at $25.38 [6] Group 4: Plug Power Inc. - Plug Power's stock fell over 20% after announcing a warrant inducement agreement to raise $370 million, raising concerns about shareholder dilution [3] - Plug Power shares dipped 5.7% to settle at $2.79 [6]

Group 1 - The core viewpoint is that the valuation of the U.S. utility sector is significantly undervalued due to a combination of favorable factors [1] - Analysts from Wells Fargo suggest that the utility sector is fundamentally more structural than cyclical, indicating a shift in investor mindset towards viewing utilities as growth-oriented rather than yield-oriented [1] - The traditional perception of utilities as risk-averse or income-focused investments is no longer applicable, as the sector's defensive characteristics provide market support while allowing for upward flexibility in various themes [1] Group 2 - The bullish outlook on the utility sector is supported by fundamental supply and demand dynamics, which represent a structural change and serve as the growth engine for utilities and independent power producers [1] - Constellation Energy (CEG.US) is highlighted as a top investment recommendation for independent power producers, seen as a prime opportunity to capitalize on large-scale enterprise and resource abundance trends [1] - Sempra (SRE.US) is recommended as a top pick among utility companies, particularly as an ideal buying opportunity before a key adjustment period in February, given its current undervaluation and high growth potential [1]

Core Insights - Sempra Energy is a significant player in the U.S. energy infrastructure sector, focusing on utility growth and strategic asset sales, which are crucial for its long-term success [1] - The company has a market capitalization of approximately $59.8 billion, highlighting its substantial presence in the industry [1] Financial Performance - Morgan Stanley maintained an "Overweight" rating for Sempra Energy, raising the price target from $93 to $99, indicating confidence in the company's future performance [2][6] - The current stock price of Sempra Energy is $91.68, reflecting a slight decrease of 0.66% or $0.61, with fluctuations between $91.62 and $93.24 during the trading day [4] Strategic Moves - Sempra is executing a $10 billion deal to sell a 45% stake in Sempra Infrastructure, which is expected to strengthen its balance sheet and enhance projected earnings per share from 2027 onwards [3][6] - The company's long-term growth is supported by major LNG agreements and utility investments, despite facing regulatory and geopolitical challenges [5][6]

Core Insights - Sempra is a San Diego-based energy infrastructure company with a market cap of $60.5 billion, serving over 40 million consumers in the U.S. and Mexico, focusing on modernizing utility systems and expanding renewable energy initiatives [1] Financial Performance - Sempra is expected to announce its fiscal Q3 2025 earnings on November 5, with analysts predicting an adjusted EPS of $0.90, a 1.1% increase from $0.89 in the same quarter last year [2] - For fiscal 2025, the expected adjusted EPS is $4.53, down 2.6% from $4.65 in fiscal 2024, but projected to grow 12.1% year-over-year to $5.08 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, Sempra shares have gained 8.7%, underperforming the S&P 500 Index's 15.1% return and the Utilities Select Sector SPDR Fund's 11% gain [4] - Following the Q2 results announcement on August 7, Sempra shares rose 1.8% after reporting adjusted earnings of $0.89 per share, exceeding Wall Street's estimate of $0.83, with revenue at $3 billion [5] Analyst Ratings - The consensus view on Sempra stock is cautiously optimistic, with a "Moderate Buy" rating from 17 analysts, including seven recommending a "Strong Buy," one a "Moderate Buy," and nine "Holds" [6]

Core Insights - Oncor Electric Delivery Company LLC plans to release its third quarter 2025 results on November 5, prior to Sempra's third quarter 2025 results conference call [1][2] - The conference call will be hosted by Sempra executives at 12 p.m. ET on November 5, discussing Oncor's operational and financial results [2] - Oncor operates the largest transmission and distribution system in Texas, delivering electricity to over 4 million homes and businesses [3] Company Overview - Oncor is a regulated electricity transmission and distribution business headquartered in Dallas, Texas [3] - The company operates more than 144,000 circuit miles of transmission and distribution lines in Texas [3] - Oncor is owned by Sempra (indirect majority owner) and Texas Transmission Investment LLC (minority owner), with management by a Board of Directors comprised of a majority of disinterested directors [3]

Group 1 - The stock of Sempra (NYSE: SRE) has increased by approximately 25% since July, indicating strong market performance and potential undervaluation in a vital industry [1] - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology, which enhances the credibility of the insights provided [1] - The analyst has transitioned from writing a blog to creating a value investing-focused YouTube channel, showcasing a commitment to in-depth company research [1] Group 2 - The analyst expresses a beneficial long position in Sempra shares, indicating confidence in the company's future performance [2] - The article reflects the analyst's personal opinions and is not influenced by external compensation, ensuring an unbiased perspective [2]

Group 1 - The stock of Sempra (NYSE: SRE) has increased by approximately 25% since July, indicating positive market sentiment and potential undervaluation in the industry [1] - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology, which enhances the credibility of the insights provided [1] - The analyst has transitioned from writing a blog to creating a value investing-focused YouTube channel, showcasing a commitment to in-depth research on numerous companies [1] Group 2 - The analyst expresses a beneficial long position in Sempra shares, indicating confidence in the company's future performance [2] - The article reflects the analyst's personal opinions and is not influenced by external compensation, ensuring an unbiased perspective [2]

Core Insights - The U.S. Supreme Court's decisions in Citizens United v. FEC and SpeechNow.org v. FEC have significantly altered the political contributions landscape, leading to the rise of dark money, which allows unlimited contributions without disclosure requirements [1][2]. Group 1: Dark Money Usage - A study covering S&P 500 firms from 2008 to 2022 indicates a marked increase in dark money contributions, with nearly 25% of these firms reporting such contributions totaling $2.1 billion across 23,483 transactions [2][4]. - Dark money complements rather than replaces traditional political activities like PAC contributions and lobbying, with dark money expenditures reaching nearly $300 million annually by 2022 [5]. Group 2: Characteristics of Firms - Firms that disclose dark money contributions tend to be larger, older, carry more debt, and pay lower taxes compared to those that do not disclose [12]. - The likelihood of a firm disclosing dark money increases if industry peers disclose similar contributions, indicating peer effects in voluntary disclosure [8]. Group 3: Benefits of Dark Money - Firms contributing to dark money groups are 25% more likely to secure federal procurement contracts, with average contract amounts more than doubling compared to those not involved in dark money [10]. - Dark money contributors also receive more government subsidies, including grants and tax credits, while PAC contributions show no significant effect on these benefits [10]. Group 4: Political Activity and Resource Allocation - Dark money is positively related to industrywide subsidies, suggesting that contributions can enhance the flow of subsidies across entire sectors [11]. - Lobbying is more strongly correlated with the distribution of federal contracts across industries, indicating that long-term relationships facilitated by lobbyists may be more critical for procurement contracts [11].