SRE Should I Buy
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Sempra (SRE) is not a strong buy for a beginner, long-term investor at the moment. While the stock has some positive aspects, such as bullish technical indicators and analyst ratings, the financial performance is weak, and hedge funds and insiders are selling. Additionally, the stock is overbought, and the short-term trend suggests potential downside. It is best to hold off on buying until more favorable conditions emerge.
The stock is currently in a bullish trend with MACD positively expanding, RSI at 87.848 indicating overbought conditions, and moving averages (SMA_5 > SMA_20 > SMA_200) signaling upward momentum. However, the RSI suggests caution as the stock may be overextended. Key resistance levels are at 92.017 and 93.841, while support levels are at 86.111 and 84.287.
Analysts maintain an Overweight rating with price targets ranging from $92 to $112, suggesting potential upside.
Sempra's infrastructure investments in Texas and its focus on energy reliability and safety are long-term growth drivers.
Upcoming earnings on February 24, 2026, could provide clarity on financial performance and future plans.
Hedge funds and insiders are selling heavily, indicating a lack of confidence in the stock.
Financial performance in Q3 2025 showed a significant decline in net income (-87.93% YoY) and EPS (-88% YoY).
Short-term stock trend analysis predicts a potential decline of -1.33% in the next day, -1.23% in the next week, and -7.46% in the next month.
RSI indicates the stock is overbought, increasing the risk of a pullback.
In Q3 2025, revenue increased by 13.51% YoY to $3.15 billion. However, net income dropped by 87.93% YoY to $77 million, and EPS fell by 88% YoY to $0.12. Gross margin also declined by 7.7% YoY to 64.74%. These figures indicate weak profitability and declining margins.
Analysts have a generally positive view of Sempra, with most maintaining Overweight or Outperform ratings. Recent price target changes range from $92 to $112, with the majority indicating potential upside. However, some analysts have lowered their targets due to sector-wide adjustments and legal challenges faced by the company.
