Earnings estimates for Sempra Energy SRE have been revised upward over the past 30 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has moved 0.4% and 0.2% north to $5.44 and $6.07, respectively.
Sempra Energy is a southern California-based energy services holding company involved in the sale, distribution, storage and transportation of electricity and natural gas.
Let’s focus on the factors that make Sempra Energy an attractive stock to be retained for reaping greater returns.
Price Appreciation: In the past 12 months, shares of Sempra Energy have inched up 0.7% against the industry’s dip of 0.5%. The stock carries a Zacks Rank #2 (Buy).
VGM Score: The stock has a favorable VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a VGM Score of A or B coupled with a top Zacks Rank offer the best investment bets.
Earnings Estimates & Surprise Record: The Zacks Consensus Estimate for the company’s 2018 and 2019 earnings is pegged at a respective $5.44 and $6.07, reflecting nearly 0.4% and 11.7% year-over-year growth, each. Its bottom line surpassed the consensus mark in three of the last four reported quarters, the average beat being 4.97%.
Strong Capex Plan: The company continues with systematic investments in its infrastructure development projects. For the 2018-2020 period, it expects to incur a capital expenditure and make investments of approximately $15.2 billion including $12.3 billion for California Utilities and $2.9 billion for other subsidiaries with regard to funding the capital projects in Mexico and South America along with developing LNG projects. Through these investments, the company aims at vigorously modernizing its electric transmission lines and substation infrastructure.
Other Stocks to Consider
Some other top-ranked stocks from the same sector are Atmos Energy Corporation ATO, Southwest Gas Corporation SWX and American Water Works Company, Inc. AWK, each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Atmos Energy pulled off average positive surprise of 7.42% in the trailing four reported quarters. The Zacks Consensus Estimate for 2018 earnings moved 0.2% north over the past 60 days to $4.28.
Southwest Gas delivered average four-quarter beat of 31.31%. The consensus mark for current-year earnings has been revised 1.3% upward over the past 60 days to $3.79.
American Water Works came up with average four-quarter earnings surprise of 4.44%. The consensus estimate for 2018 bottom line has been raised 0.3% over the past 60 days to $3.30.
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