Sempra (SRE), based in San Diego, California, operates as an energy infrastructure company. Valued at $52.9 billion by market cap, the company focuses on delivering sustainable energy to consumers, as well as investing, developing, and operating transmission and distribution infrastructures.

Shares of this utility giant have underperformed the broader market over the past year. SRE has gained 6.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 21.9%. In 2025, SRE stock is down 5.9%, compared to the SPX’s 7.8% gains on a YTD basis. 

Narrowing the focus, SRE’s underperformance is also apparent compared to the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained about 18.1% over the past year. Moreover, the ETF’s 14.4% returns on a YTD basis outshine the stock’s single-digit losses over the same time frame.

Recently, 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. SRE expects full-year adjusted EPS in the range of $4.30 to $4.70.

For the current fiscal year, ending in December, analysts expect SRE’s EPS to grow marginally to $4.68 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.

Among the 17 analysts covering SRE stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, one “Moderate Buy,” and nine “Holds.”

This configuration is less bullish than two months ago, with eight analysts suggesting a “Strong Buy.”

On Aug. 4, Citigroup Inc. (C) analyst Ryan Levine kept a “Neutral” rating on SRE and raised the price target to $80.

While SRE currently trades above its mean price target of $82.19, the Street-high price target of $87 suggests a 5.3% upside potential.