San Diego, California-based Sempra (SRE) is an energy services company involved in the sale, distribution, storage and transportation of electricity and natural gas. With a market cap of $51.8 billion, Sempra operates through Sempra California, Sempra Texas Utilities, and Sempra Infrastructure segments.

Companies worth $10 billion or more are generally described as “large-cap stocks,” Sempra fits the bill perfectly. Its dominant utility presence in California and Texas, a growing global LNG and infrastructure portfolio, and high-growth potential at Oncor, driven by electrification and data center demand, drives its market leadership.

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However, Sempra has tanked 17.1% from its 52-week high of $95.77 touched on Nov. 25, 2024. Furthermore, SRE plummeted 3.3% over the past three months, trailing the Utilities Select Sector SPDR Fund's (XLU) 1.8% return over the same time frame.

Sempra’s performance has remained grim over the longer term as well. SRE has plunged 9.5% in 2025 and 3.3% over the past 52 weeks, compared to XLU’s 9.2% rise on a YTD basis and 8.8% gains over the past year.

To confirm the recent uptrend, Sempra has been trading above its 50-day and 200-day moving averages since mid-June.

On Aug. 7, SRE shares closed up by 1.8% after reporting its Q2 results. Its adjusted EPS of $0.89 exceeded Wall Street's expectations of $0.83. The company’s revenue stood at $3 billion, down marginally year over year. Operationally, Sempra highlighted continued progress in its strategic shift toward a more utility-centric model, including regulatory gains in Texas and major construction projects across its infrastructure portfolio. Additionally, SRE expects full-year adjusted EPS in the range of $4.30 to $4.70.

Top competitor, AES Corporation (AES) has also experienced the same challenges as SRE and has declined 1.2% in 2025 and 21.4% over the past year.

Among the 17 analysts covering the SRE stock, the consensus rating is a “Moderate Buy.” Its mean price target of $83.88 represents a 5.6% premium to current price levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com