Sempra Energy Rides on LNG Operations & Strategic Investments

Sempra Energy SRE benefits from systematic investments that improve the stability of its operations, allowing it to serve its customers efficiently. The company is also expanding its liquid natural gas (LNG) operations to strengthen its position in the U.S. LNG market.However, this Zacks Rank #3 (Hold) company is exposed to risks like unattractive valuation and increased wildfire events.Positive Drivers for SRESempra Energy has a capital investment plan of $56 billion for 2025-2029 to strengthen its infrastructure and enable the company to serve its customers more efficiently. SRE expects this systematic investment to drive rate base growth of 10% annually during 2025-2029. SRE is well-positioned with strategically located opportunities in North America as the demand for LNG continues to rise globally. During 2025, the company plans to invest $13 billion, the majority of which will go toward transmission and distribution enhancements at its regulated public utilities, as well as the building of the PA LNG Phase 1 project, the ECA LNG Phase 1 project, and natural gas pipelines at Sempra Infrastructure.Utility service providers like Sempra Energy are investing in adding more renewable energy to their portfolio to qualify for the utility-scale renewable energy market's financial, environmental, social and governance incentives. Sempra Infrastructure is currently developing the Cimarrón Wind project, a 320-megawatt wind production facility in Baja California, Mexico. The project is scheduled to generate energy in late 2025 and start commercial operations in the first half of 2026.Factors That May Affect Sempra Energy’s StockInvestors may be concerned about the company's comparative study of its trailing 12-month Enterprise Value/Sales (EV/Sales) ratio, which paints a somewhat dismal image. The stock reportedly has a trailing 12-month EV/Sales ratio of 6.22, which is greater than the industry’s 4.83 EV/sales ratio. In recent years, California experienced some of its greatest wildfires. These wildfires can create temporary power outages in the service zones of SDG&E and SoCalGas, as well as damage Sempra Energy's electric and natural gas infrastructure, resulting in considerable losses.SRE Stock’s Price MovementIn the past month, Sempra Energy’s shares have risen 4.3% compared with the industry’s growth of 0.7%. Image Source: Zacks Investment Research Stocks to ConsiderSome better-ranked stocks from the same industry are Southwest Gas SWX, which sports a Zacks Rank #1 (Strong Buy), and Atmos Energy Corp. ATO and UGI Corporation UGI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.SWX’s long-term (three to five years) earnings growth rate is 9.9%. The Zacks Consensus Estimate for its 2025 earnings per share stands at $3.74, which indicates a year-over-year rally of 18.4%.ATO’s long-term earnings growth rate is 7.2%. The Zacks Consensus Estimate for its fiscal 2025 earnings per share stands at $7.22, which suggests a year-over-year rise of 5.7%.UGI’s long-term earnings growth rate is 5.2%. The Zacks Consensus Estimate for its fiscal 2025 earnings per share stands at $3.08, which implies year-over-year growth of 0.7%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Sempra Energy (SRE): Free Stock Analysis Report Southwest Gas Corporation (SWX): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report UGI Corporation (UGI): 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