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After enduring its second consecutive day of losses, Sempra’s current share price is now significantly below its one-year high of $84.13 reached in December last year. The energy services holding company’s performance has notably underperformed in comparison to its industry peers such as Duke Energy (NYSE:DUK), which closed at $92.47, Exelon Corp (NASDAQ:EXC) at $38.50, and Public Service Enterprise Group (NYSE:PEG) Inc at $62.60.
The trading volume for Sempra was notably lower than average, with only 2.8 million shares traded compared to the 50-day average of 3.5 million shares. This subdued trading activity comes amid a period where the company is trailing behind its competitors and the wider market trend.
Investors are keeping a close watch on Sempra as it navigates through these challenging market conditions, with its stock price now standing $13.20 below its yearly peak and lagging behind key competitors in the utilities sector.
As Sempra navigates a turbulent market, investors are considering a variety of factors to gauge the company’s financial health and future prospects. According to InvestingPro data, the company boasts a market capitalization of $44.64 billion and is trading at a P/E ratio of 16.41, which is relatively low compared to its near-term earnings growth potential. The PEG ratio, which stands at 0.8 as of the last twelve months ending Q3 2023, suggests that the stock may be undervalued given its earnings growth rate.
Despite recent market challenges, Sempra has demonstrated a commitment to shareholder returns, having raised its dividend for 13 consecutive years, which is a testament to its financial resilience and management’s confidence in the company’s stability. The dividend yield stands at an attractive 3.36%, with the last dividend ex-date recorded on December 5, 2023. This commitment to consistent dividend payments is further underscored by the fact that Sempra has maintained dividend payments for 26 consecutive years.
InvestingPro Tips highlight that Sempra has consistently increased its earnings per share and that analysts predict the company will be profitable this year, which is corroborated by the company being profitable over the last twelve months. These factors may be particularly relevant for investors looking for stable income-generating investments in the current economic climate. For those seeking deeper insights, there are additional InvestingPro Tips available, which could provide further guidance on the company’s financial health and stock performance. A subscription to InvestingPro is now on a special Cyber Monday sale with a discount of up to 60%, and using coupon code sfy23 can provide an additional 10% off a 2-year InvestingPro+ subscription.
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