- 1
SRE stock price: the company’s stock has been experiencing a downtrend for a year. - 2
The company’s management is optimistic about the growth they foresee in their diversified business. - 3
The current price is currently trading close to its immediate resistance level., the predictions are here.
Sempra (NYSE: SRE) is an energy-service holding company based in California. The company mainly develops and operates energy infrastructure and provides electricity and gas services. SRE stock has a market cap of $43B and its current price is trading at $65.
Revenue has Been Down but Profits Have Risen
Sempra has delivered its 2023 second-quarter results and the market has reacted bearish on it. The revenue growth was negative at 9.03% while the net profit was $603 Million. This later translated into an earnings per share of $1.91. The net revenue however has increased when compared with the second-quarter profit of $559 Million, or $1.77 per share of last year. For the first half of 2023, the firm made $1.5 Billion in net income or $4.97 per share.
“We Will Be the Best”
Sempra Framework is supposed to accomplish significant monetary profits in 2023 as it keeps on growing its three interconnected business portions. Sempra’s CEO and President, Jeffrey W. Martin, stated in the earnings report that the business is as yet making progress toward its objective of being the best energy foundation supplier in North America. Such a bold statement publicly even after making a negative revenue makes it very clear that the firm is very confident.
Technical Analysis and Prediction of the SRE Stock Price
The SRE stock price has been down since the start of September 2022. Even though the financial results were in the favor of bulls, they weren’t able to show strength to reverse this trend. The stock made its 52-week high of $88.2 during the first week of September last year, and since then, the downtrend has continued.
The SRE stock price has broken some significant downtrends, and currently, it is at the level of $68.56. The stock tried to break the immediate resistance level of $69 after the bulls reclaimed the resistance level of $65.4.
RSI Uncovers the Actual Picture
However, the RSI tells an entirely different picture; the RSI line was on 57 when the Bears took control. Turning back some pages of history, we see how the Bears arrived before the RSI touched its overbought level of 70. This is showing a weakness in the bullish strength, which will continue unless a big move arrives.
Conclusion
Sempra (NYSE: SRE) is an energy-service holding company. The firm has posted its quarterly reports recently in which the revenue showed a negative growth but the profits somehow became positive. The current price is near the resistance level but the prediction is bearish as shown by the RSI.
Technical Levels
- Support: $65, and $61
- Resistance: $69, and $74
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/23/sre-stock-price-a-falling-knife-or-a-lifetime-discount/