Back to top

Image: Bigstock

4 Reasons to Add Sempra Energy (SRE) to Your Portfolio Now

Read MoreHide Full Article

Sempra Energy’s (SRE - Free Report) earnings estimates have been revised upward over the past 60 days, reflecting analysts’ optimism surrounding the stock. The Zacks Consensus Estimate for 2020 and 2021 earnings has moved up 0.6% and 0.3%, respectively, during the said period.

The company and its subsidiaries are involved in the sale, distribution, storage and transportation of electricity and natural gas.

Let’s focus on the factors that make it a good investment option at the moment.

Strong Investment Plan

Sempra Energy has well-chalked plans to invest $32 billion in different projects within the 2020-2024 time period. These investments will be directed to modernize and strengthen the company’s existing infrastructure. More than 85% of the planned capital expenditure will be used for strengthening its U.S. utilities.

Price Movement

Quarter to date, Sempra Energy’s shares have gained 6.3% compared with the industry’s growth of 4.9%.

 


Return on Equity (ROE)

The company’s ROE of 11.3% compared with the industry average of 8.89% indicates that it is more efficient in utilizing shareholders’ funds than industry peers.

Long-Term Growth and Dividend Yield

The company’s long-term (three to five years) earnings growth is projected at 6.9%, courtesy of well chalked-out capital investment plans to strengthen electric and natural gas operations.

Its current dividend yield is 3.47% compared with the Zacks S&P 500 composite’s average of 2.23%.

Zacks Rank & Other Key Picks

Sempra Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other top-ranked stocks from the same sector include NextEra Energy (NEE - Free Report) , Vistra Energy Corp. (VST - Free Report) and NRG Energy (NRG - Free Report) , each holding a Zacks Rank of 2.

Long-term earnings growth of NextEra Energy, Vistra Energy and NRG Energy is projected at 7.7%, 11.9% and 44.6%, respectively.

NextEra Energy’s earnings estimates have remained stable over the past 30 days and it delivered average positive earnings surprise of 2.4% in the last four quarters.

The Zacks Consensus Estimate for 2020 earnings for Vistra Energy and NRG Energy has moved up 5.5% and 1.1%, respectively, in the past 30 days.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?

Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2020 today >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


NextEra Energy, Inc. (NEE) - free report >>

NRG Energy, Inc. (NRG) - free report >>

Sempra Energy (SRE) - free report >>

Vistra Corp. (VST) - free report >>

Published in