Yahoo Finance·2025-10-30 11:00Core 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]