Sempra Energy (SRE) Highlighted As Storm The Castle Stock
Trade-Ideas LLC identified
(
) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Sempra Energy as such a stock due to the following factors:
- SRE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $109.8 million.
- SRE has traded 328,705 shares today.
- SRE is trading at 3.48 times the normal volume for the stock at this time of day.
- SRE crossed above its 200-day simple moving average.
'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on SRE:
Sempra Energy operates as an energy services holding company worldwide. The company's San Diego Gas & Electric Company segment transmits and distributes electricity and/or natural gas. The stock currently has a dividend yield of 2.7%. SRE has a PE ratio of 19. Currently there are 5 analysts that rate Sempra Energy a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Sempra Energy has been 1.4 million shares per day over the past 30 days. Sempra Energy has a market cap of $25.4 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.58 and a short float of 2% with 4.47 days to cover. Shares are down 8.1% year-to-date as of the close of trading on Monday.
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Analysis:
rates Sempra Energy as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, good cash flow from operations, notable return on equity and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- SEMPRA ENERGY has improved earnings per share by 8.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SEMPRA ENERGY increased its bottom line by earning $4.64 versus $4.02 in the prior year. This year, the market expects an improvement in earnings ($4.85 versus $4.64).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Multi-Utilities industry average. The net income increased by 9.6% when compared to the same quarter one year prior, going from $270.00 million to $296.00 million.
- Net operating cash flow has significantly increased by 213.84% to $408.00 million when compared to the same quarter last year. In addition, SEMPRA ENERGY has also vastly surpassed the industry average cash flow growth rate of 29.13%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Multi-Utilities industry and the overall market on the basis of return on equity, SEMPRA ENERGY has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full Sempra Energy Ratings Report.
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