Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Sempra Energy

(

SRE

) as a new lifetime high 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 $130.0 million.
  • SRE has traded 11,443 shares today.
  • SRE is trading at a new lifetime high.

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More details on SRE:

Sempra Energy, through its subsidiaries, operates as an energy services company. The company's San Diego Gas & Electric Company segment generates, transmits, and distributes electricity; and distributes, transmits, and stores natural gas in California. The stock currently has a dividend yield of 2.7%. SRE has a PE ratio of 24.1. Currently there are 8 analysts that rate Sempra Energy a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Recommends

The average volume for Sempra Energy has been 1.3 million shares per day over the past 30 days. Sempra Energy has a market cap of $23.8 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.31 and a short float of 1.2% with 2.15 days to cover. Shares are up 8.3% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sempra Energy as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • SRE's revenue growth has slightly outpaced the industry average of 1.8%. Since the same quarter one year prior, revenues slightly increased by 1.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $454.00 million or 37.57% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.36%.
  • SEMPRA ENERGY' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SEMPRA ENERGY increased its bottom line by earning $4.02 versus $3.49 in the prior year. This year, the market expects an improvement in earnings ($4.43 versus $4.02).
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • 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. When compared to other companies in the Multi-Utilities industry and the overall market, SEMPRA ENERGY's return on equity is below that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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