Is Sempra (SRE) One of the Most Undervalued Utility Stocks to Buy Now?

Sempra (NYSE:SRE) is among the 11 Most Undervalued Utility Stocks to Buy Now.

On February 27, Wells Fargo raised the firm’s price target on Sempra (NYSE:SRE) to $113 from $112 and maintained an Overweight rating following the company’s earnings release. In the firm’s view, the latest print reinforces that Oncor represents the most valuable asset in the regulated utility sector, supported by an updated capital expenditure plan that now drives a projected 17% compound annual growth rate in rate base. Wells Fargo believes the moving pieces across Sempra’s portfolio — including transmission expansion, regulated infrastructure investment, and capital recycling — further strengthen its “best idea” Overweight thesis, underpinned by durable earnings visibility and above-peer rate base growth.

The day prior, Sempra (NYSE:SRE)’s board of directors declared a quarterly dividend of $0.6575 per share payable April 15 to shareholders of record at the close of business on March 19. The declaration increases the company’s annualized common dividend to $2.63 per share from $2.58 in 2025, reflecting continued dividend growth alongside its capital investment cycle.

Founded in 1998 and headquartered in San Diego, California, Sempra (NYSE:SRE) is a leading North American energy infrastructure company serving nearly 40 million consumers across the United States, Mexico, and global energy markets.

While we acknowledge the potential of SRE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 11 Best Pot Stocks to Buy According to Hedge Funds and 11 Best Low Priced Growth Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.