Stockchase Opinions

Jim Cramer - Mad Money Sempra Energy SRE-N BUY ON WEAKNESS Feb 21, 2025

A growth utility paying a decent yield and offering much opportunity. He maybe buy it on a dip.

$87.150

Stock price when the opinion was issued

gas utilities
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TOP PICK
3% dividend. Particularily attractive in the short run. Energy trading is coming back. Good physical assets and good expertise.
DON'T BUY
A utility that's de-leveraging now. He wouldn't jump on this. A high valuation too. There is some yield and a lower 10-year yield will support utilities. This is really rich.
BUY
It operates in California and Texas and has an LNG terminal in Lousiana. However, some of its pipelines are in some are in Mexico, where the president may or may not nationalize the industry, and California has climate goals that could be difficult to meet. The energy grid in Texas is a disaster. For these reason, the stock has fallen from its $172 peak to $152 today. He remains positive--it pays a 3% dividend, and he sees growth.
BUY

A growth utility with a natural gas kicker, including pipelines and a LNG terminal in Louisiana. Has been putting up great numbers, but shares are -5% YTD because of weak nat gas prices. They have best-in-class assets and serve big markets of California and Texas. You're paid a 3.2% yield to wait till shares move higher.

BUY

Utilities have been beaten this year, being the worst sector, but there's hope now that interest rates have stopped rising or close to it. SRE is one of the best growth names in this space with two strong utilities in California, one in Texas, plus more in Mexico. Operations include alternative energy and natural gas. tis 3.2% dividend isn't enough compared to treasuries. But the CEO is terrific and they keep putting up strong numbers. He's been watching this closely and will buy once he frees up space in his portfolio.

BUY

Is up 17% this year with half that gain coming a month ago after they reported a super quarter. They own regulated gas and electric utilities and California and Texas, plus an infrastructure business. They have room to play catch-up.

BUY ON WEAKNESS

Yields only 3%, but the CEO is doing a fine job.

DON'T BUY

They had a bad quarter and deserves to trade lower. It yields almost 4%.