Bottom Line:
📊 HOLD: SRE shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$129.60
Based on 6.2% avg growth
INTRINSIC VALUE TODAY
$80.47
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 17.4x Exit PE.
Valuation Analysis: SRE is currently trading at $96.58, which is considered extended relative to its 30-day fair value range of $93.25 to $95.75. The stock's valuation (Forward PE: 17.3) is in line with its historical norms (17.4). Remarkably, the market is currently pricing in an annual earnings decline of 0.1% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, SRE is in a strong uptrend. The price is approaching resistance at $97.61. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: SRE has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
EXTENDED
Fair Price Range
$93.25 -
$95.75
Company Quality Score
61/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
57.1%
Protect Your Profits
Holding SRE? Use our AI-powered strategies to protect your downside while keeping your long-term position.
Sempra Energy serves one of the largest utility customer bases in the United States. It distributes natural gas and electricity in Southern California and owns 80% of Oncor, a transmission and distribution business in Texas. Sempra Infrastructure partners, of which Sempra will hold a 25% ownership, owns and operates liquefied natural gas facilities in North America and infrastructure in Mexico.
