Sempra recently experienced a 8% decline in its share price amid a highly volatile market environment influenced by global trade tensions. As the Dow Jones and S&P 500 faced fluctuations, Sempra's downward movement aligns with broader market trends, suggesting that the company's results are not solely driven by specific corporate developments. Throughout the past month, other events, such as tariff impositions affecting various sectors, added weight to the market's downward slide, reinforcing broader investor concerns over economic growth and profitability across industries, including those impacting Sempra’s field of operations.

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Sempra's recent 8% decline in share price amidst market volatility, primarily due to global trade tensions, could impact both its revenue and earnings forecasts. As tariff impositions across sectors contribute to slowing economic growth, Sempra may face challenges in maintaining projected revenue increases. With analysts anticipating a 9.3% annual revenue growth, disruptions in global trade could become obstacles for the company's ambitious US$56 billion capital plan and long-term growth trajectory.

Over the past five years, Sempra's total return, including dividends, was 17.28%, indicating moderate long-term growth. However, when compared to the US Integrated Utilities industry, Sempra underperformed, which returned 12.4% over the past year, highlighting challenges faced by the company relative to its peers. Furthermore, despite a current share price of US$71.56, the consensus analyst price target of US$81.475 suggests a potential upside of 12.2%. However, this is tempered by internal pressures such as lower EPS guidance and regulatory impacts, potentially stalling momentum.

Sempra's share price discount to its price target underscores the need for investor diligence, particularly given uncertainties in interest rates and regulatory outcomes impacting margins. Analysts' expectations for earnings to grow to US$3.7 billion by 2028 rely on a 18.8x PE ratio, which is currently below the Integrated Utilities industry average of 22.6x. Investors should weigh these targets against potential financial pressures and evolving economic conditions affecting Sempra's operational and capital investment plans.

Review our growth performance report to gain insights into Sempra's future.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:SRE.

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