Sempra Stock: Is SRE Underperforming the Utility Sector?

Company Overview - Sempra is an energy services company based in San Diego, California, involved in the sale, distribution, storage, and transportation of electricity and natural gas, with a market cap of $51.8 billion [1] - The company operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure [1] Market Position - Sempra is classified as a large-cap stock, benefiting from a dominant utility presence in California and Texas, a growing global LNG and infrastructure portfolio, and high growth potential at Oncor due to electrification and data center demand [2] Stock Performance - Sempra's stock has declined 17.1% from its 52-week high of $95.77 on November 25, 2024, and has plummeted 3.3% over the past three months, underperforming the Utilities Select Sector SPDR Fund (XLU), which returned 1.8% in the same period [3][4] - Over the longer term, Sempra's stock has dropped 9.5% in 2025 and 3.3% over the past 52 weeks, while XLU has risen 9.2% year-to-date and 8.8% over the past year [4] Financial Performance - On August 7, Sempra reported Q2 results with an adjusted EPS of $0.89, exceeding Wall Street's expectations of $0.83, while revenue was $3 billion, showing a slight year-over-year decline [5] - The company is making progress in its strategic shift towards a more utility-centric model, including regulatory gains in Texas and major construction projects in its infrastructure portfolio [5] - Sempra expects full-year adjusted EPS to be in the range of $4.30 to $4.70 [5] Analyst Ratings - Among the 17 analysts covering Sempra stock, the consensus rating is a "Moderate Buy," with a mean price target of $83.88, indicating a 5.6% premium to current price levels [6]