Reasons to Include Sempra Energy Stock in Your Portfolio Now

Sempra Energy SRE continues to benefit from its structured investment program in infrastructure development, aimed at meeting rising electricity demand and delivering safe, reliable and efficient services to its customers. Given its strong growth, SRE makes for a solid investment option in the Zacks Utility - Gas Distribution industry.Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock a reliable investment pick at the moment.SRE’s Growth Outlook & Surprise HistoryThe Zacks Consensus Estimate for SRE’s 2025 earnings per share (EPS) is pegged at $4.68, which implies a year-over-year rise of 0.7%.The Zacks Consensus Estimate for SRE’s total revenues for 2025 stands at $15.86 billion, indicating year-over-year growth of 20.3%.The company’s (three to five years) earnings growth rate is 7.9%. It delivered an average earnings surprise of 0.56% in the last four quarters.Sempra’s Return to ShareholdersSempra Energy has been increasing shareholder value through dividend payments. Currently, the company’s quarterly dividend is 64.5 cents per share, resulting in an annualized dividend of $2.58. The company’s current dividend yield is 3.16%, better than the Zacks S&P 500 Composite’s 1.15%.SRE’s Systematic InvestmentSRE is steadily advancing its infrastructure development through systematic investments, with $13 billion allocated for 2025. Over the 2025-2029 period, the company plans to deploy $56 billion in capital, including $22.4 billion for Sempra California, $29.1 billion for Sempra Texas Utilities and $4 billion for Sempra Infrastructure.These initiatives are expected to fortify the company’s infrastructure and enhance its ability to deliver safe, reliable and efficient electricity to customers.Overview of SRE’s Debt StructureCurrently, SRE’s total debt to capital is 50.19%, better than the industry’s average of 51.09%.The times interest earned ratio (TIE) at the end of the second quarter of 2025 was 2.7. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.SRE Stock Price PerformanceIn the past six months, SRE shares have risen 14.3% compared with the industry’s growth of 8.7%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks related to the same sector are Atmos Energy Corp. ATO, NiSource, Inc. NI and Fortis FTS, each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.ATO’s long-term earnings growth rate is 7.3%. The Zacks Consensus Estimate for fiscal 2025 EPS stands at $7.33, which suggests a year-over-year rise of 7.3%.NI’s long-term earnings growth rate is 7.9%. The consensus estimate for 2025 EPS is pegged at $1.88, which indicates a year-over-year improvement of 7.4%.  FTS’ long-term earnings growth rate is 5.1%. The consensus mark for 2025 EPS stands at $2.50, which calls for a year-over-year increase of 4.6%.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NiSource, Inc (NI): Free Stock Analysis Report Sempra Energy (SRE): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report Fortis (FTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks