Core Insights - The Federal Reserve has reduced interest rates by 25 basis points, bringing the federal funds rate to a target range of 3.5% to 3.75% [1] - The transition in leadership at the Federal Reserve in 2026 introduces uncertainty regarding future interest rate policies [4][5][8] Consumer Staples and Utilities Sector - Stocks in the Zacks Consumer Staples and Utilities sectors are recommended due to their lower volatility amid current market uncertainty [2][9] - Notable consumer staples stocks include Monster Beverage (MNST) and Mama's Creations, Inc. (MAMA), both rated Zacks Rank 1 (Strong Buy) [2][11] - Utilities stocks such as Dominion Energy (D), Ameren Corporation (AEE), and Sempra Energy (SRE) hold Zacks Rank 2 (Buy) and are expected to perform well [2][11] Low-Beta Stocks - The highlighted stocks are categorized as low-beta stocks, indicating they are less volatile compared to the broader market [3][12] - These stocks are projected to show earnings growth in 2026, supported by favorable Zacks Ranks [3] Individual Stock Performance - **Monster Beverage**: - Beta of 0.48, long-term earnings growth of 16.81%, and 2026 sales estimate of $9 billion reflecting a growth of 9.48% [16][17] - **Mama's Creations**: - Beta of 0.79, long-term earnings growth of 4.35%, and 2026 sales estimate of $218.2 million reflecting a growth of 26.49% [18][19] - **Dominion Energy**: - Beta of 0.70, long-term earnings growth of 10.26%, and 2026 sales estimate of $16.48 billion reflecting a growth of 5.14% [20][21] - **Ameren Corporation**: - Beta of 0.57, long-term earnings growth of 8.52%, and 2026 sales estimate of $9.71 billion reflecting a growth of 6.33% [22][23] - **Sempra Energy**: - Beta of 0.73, long-term earnings growth of 7.33%, and 2026 sales estimate of $14.74 billion suggesting growth of 8.5% [24][25]

Company Overview - Sempra (NYSE:SRE) shares closed slightly lower, down 0.4% to $86.94 during Friday's session [5] - The company has narrowed its FY2025 adjusted EPS forecast from a range of $4.30-$4.70 to $4.70, which is above market estimates of $4.54 [1] Dividend Information - Sempra currently offers an annual dividend yield of 2.97%, translating to a quarterly dividend of 64.5 cents per share, or $2.58 annually [1] - To earn $500 monthly or $6,000 annually from dividends, an investment of approximately $202,222 or around 2,326 shares is required [2] - For a more modest income of $100 monthly or $1,200 annually, an investment of roughly $40,514 or 466 shares is needed [2] Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on changes in both the dividend payment and the stock price [3][4] - For example, if a stock pays an annual dividend of $2 and is priced at $50, the yield would be 4%. If the price increases to $60, the yield drops to 3.33%, and if it falls to $40, the yield rises to 5% [4]

Core Viewpoint - California regulators have reduced the profit margins for utilities on infrastructure investments to address rising electricity bills while balancing the need for grid fortification against wildfire risks [1][2]. Group 1: Regulatory Changes - The California Public Utilities Commission voted 4-1 to set profit returns for PG&E, Southern California Edison, and San Diego Gas & Electric in the range of 9.78% to 10.03%, which is slightly above the national average of approximately 9.72% [3]. - PG&E had requested a profit margin of 11.3%, while Southern California Edison and San Diego Gas & Electric sought margins of 11.75% and 11.25%, respectively [3]. Group 2: Financial Implications - The decision aims to mitigate the financial burden on consumers by controlling utility costs, which have been significantly impacted by the need for infrastructure improvements to prevent wildfires [2]. - The costs associated with fortifying the grid are expected to reach billions of dollars, which utilities typically pass on to consumers [2].

Core Insights - San Diego Gas & Electric (SDG&E) has achieved the ReliabilityOne Award for Outstanding Reliability Performance for 20 consecutive years, highlighting its commitment to enhancing grid resilience and reliability for millions of consumers [1][3][7] Group 1: Reliability Performance - SDG&E's reliability performance has surpassed that of its western peers due to strategic investments and initiatives, including modernizing infrastructure and deploying predictive analytics to prevent outages [1][4] - The company serves 3.4 million consumers and has made first-of-their-kind investments in technology to create a safer and more reliable energy system [3][5] Group 2: Workforce and Operations - Delivering reliable service requires a skilled workforce, resilient supply chain, and trusted contractor partnerships, enabling SDG&E to maintain and restore service quickly [2][4] - SDG&E's operational excellence is supported by rigorous planning and a collaborative approach with suppliers and contractors [2][4] Group 3: Technological Advancements - The company has integrated advanced technologies, such as high-definition cameras and artificial intelligence for early fire detection, and automated devices to isolate outages [5][6] - SDG&E has modernized its data systems for quicker, data-driven decisions and improved outage analysis, enhancing service dependability [5][6] Group 4: Safety and Recognition - SDG&E is the first utility in California to earn Cal/OSHA's elite VPP safety certification, reflecting its commitment to workplace safety and operational excellence [5][6] - The company has been recognized as a leader in the industry and community, receiving multiple awards for its reliability and service [7][8]

Company Overview - Sempra (SRE) is an energy infrastructure company based in San Diego, California, with a market cap of $61.8 billion, focusing on sustainable energy delivery and infrastructure development [1] - The company operates in the utilities - diversified industry and has a strong market presence, particularly in Southern California and Texas, supported by its extensive utility customer base [2] Financial Performance - SRE reported Q3 results with an adjusted EPS of $1.11, exceeding Wall Street expectations of $0.93, and revenue of $3.2 billion, reflecting a year-over-year increase of 13.5% [5] - For the full year, SRE expects adjusted EPS to be in the range of $4.30 to $4.70 [5] Stock Performance - SRE's stock has seen a 10.8% gain over the past three months, outperforming the Utilities Select Sector SPDR Fund (XLU), which gained 5% in the same period [3] - Year-to-date, SRE shares rose 4.3%, but they dipped 2.3% over the past 52 weeks, underperforming XLU's YTD gains of 16.9% and 6.7% returns over the last year [4] Analyst Sentiment - Wall Street analysts maintain a "Moderate Buy" consensus rating for SRE, with a mean price target of $100.86, indicating a potential upside of 10.2% from current price levels [6]

Core Insights - Sempra Energy (SRE) is enhancing operational reliability and customer service through strategic investments while expanding its renewable energy portfolio [1][4] Group 1: Growth Catalysts - The company plans to invest $13 billion by 2025, focusing on transmission and distribution upgrades to meet rising electricity demand, particularly from AI data centers [2] - Capital investments are expected to increase by approximately 30% from 2026 to 2029, supporting a projected rate base growth of about 10% annually through 2025-2029 [2] - Sempra Infrastructure is advancing natural gas liquefaction export projects, with significant construction progress on ECA LNG Phase 1 and Port Arthur LNG Phase 1 as of September 2025 [3] Group 2: Renewable Energy Initiatives - Sempra Energy is actively growing its renewable energy portfolio to leverage economic and ESG incentives in the utility-scale renewable energy market [4] - As of December 31, 2024, Sempra Infrastructure had 1,044 megawatts (MW) of fully contracted capacity from operating wind and solar facilities, with an additional 2,318 MW of residential and commercial rooftop solar capacity in SDG&E's service area [4] Group 3: Stock Performance - Over the past six months, Sempra Energy shares have increased by 20.4%, outperforming the industry's growth of 17.1% [7]

Core Points - The U.S. Federal Energy Regulatory Commission (FERC) has granted a five-year extension for the completion of Sempra's Cameron LNG export facility in Louisiana [1] Company Summary - Sempra's Cameron LNG export facility is now allowed additional time to finalize construction, indicating regulatory support for the project [1] Industry Summary - The extension reflects ongoing developments in the U.S. LNG export sector, which is crucial for meeting global energy demands [1]

Summary of Key Points from the Conference Call Industry Overview - The focus remains on electricity demand, AI/power needs, and their impact on equities within the Energy, Utilities, and Mining sectors [1][5] Company Insights EQT (Oil & Gas) - EQT is highlighted as a high-quality equity for exposure to power demand, being a low-cost Appalachian producer with significant inventory depth [2] - The company benefits from extensive midstream infrastructure post-ETRN acquisition, enhancing local project interconnectivity [2] - Positive outlook maintained with a 12-month price target of $66 per share, reflecting an 8.5% target FCF yield on 2026/2027 estimates [2] Kinder Morgan (KMI) (Midstream) - KMI is viewed as a top opportunity due to its role in transporting ~40% of US natural gas and its interconnectivity across key regions [3] - The company is in discussions for $10 billion of pre-FID projects aimed at growing power demand, with a notable discount in stock price compared to peers [6] Sempra Energy (SRE) (Utilities) - SRE is rated as a Buy, with Oncor expected to benefit from data center load growth and a supportive regulatory environment [7] - The stock trades at 17.6x 2026E P/E, with an expected EPS growth rate of 10% through 2029, suggesting a higher multiple is warranted [7] Duke Energy (DUK) (Utilities) - DUK is also rated as a Buy, with a price target of $141, reflecting a 19.5x P/E multiple on estimates [7] - The company plans to increase capex to $95-$105 billion due to rising demand, with a competitive advantage in gas generation [7] MasTec (MTZ) (Energy Services) - MTZ is positioned well for growth due to increased utility capital spending and upcoming T&D projects starting in mid-2026 [8] - The stock trades at ~13x 2026 EV/EBITDA, slightly below the target of 14x, indicating potential for upside [8] Array Technologies (ARRY) (Clean Technology) - ARRY is seen as a compelling investment in the utility-scale solar sector, trading at a P/E of 11.1x compared to peers at 14.2x [10] - The company has improved its growth outlook and is experiencing bookings acceleration, which should lead to margin expansion [10] Market Dynamics - The overall sentiment is constructive regarding growing power demand, which is expected to support gas demand growth and infrastructure development [3] - There is a noted disconnect in valuations, particularly for ARRY, which is trading at a significant discount despite improved growth prospects [10] Risks and Considerations - Key risks for companies include lower commodity prices, execution risks on capital plans, and regulatory uncertainties [60] - Investors are advised to consider the potential for LNG cargo cancellations impacting the US gas market later in the decade [41] Conclusion - The conference call highlighted a positive outlook for several companies within the Energy, Utilities, and Mining sectors, driven by increasing power demand and strategic capital investments. However, investors should remain cautious of potential risks associated with commodity price fluctuations and execution challenges.

Group 1 - Cullen Capital Management's "SCCM Value Equity Strategy" reported a 6.9% return (gross of fees) and 6.8% (net of fees) in Q3 2025, outperforming the Russell 1000 Value's 5.3% and underperforming the S&P 500's 8.1% during the same period [1] - Year-to-date, the strategy achieved a 13.0% return (gross), compared to the Russell 1000 Value's +11.7% and the S&P 500's +14.8% [1] - The fund's top 5 holdings are highlighted as potential best picks for 2025 [1] Group 2 - Sempra (NYSE:SRE) is an energy infrastructure company with a market capitalization of $59.407 billion, closing at $91.02 per share on November 19, 2025 [2] - Sempra's one-month return was -0.86%, and it lost 3.88% of its value over the last 52 weeks [2] - Sempra was sold from the SCCM Value Equity Strategy during the quarter due to challenges in the California utility market, which outweighed the positives from Texas [3] - The company's P/E multiple increased to 20x, making it less compelling compared to the 16x P/E multiple at the time of purchase in 2024 [3] Group 3 - Sempra is not among the 30 Most Popular Stocks Among Hedge Funds, with 47 hedge fund portfolios holding it at the end of Q2 2025, down from 48 in the previous quarter [4] - The potential of Sempra as an investment is acknowledged, but certain AI stocks are considered to offer greater upside potential and less downside risk [4]

Core Viewpoint - Sempra's management is increasing focus on Texas, which is expected to drive earnings growth in the medium term according to Goldman Sachs [1] Group 1: Analyst Upgrades and Price Target - Analyst Carly Davenport upgraded Sempra's rating from Neutral to Buy and raised the price target from $88 to $106 [2] - The Texas utility, Oncor, is well-positioned to benefit from growth in data center load and higher business, infrastructure, and population growth in the state [2] Group 2: Regulatory Environment and Capital Investments - Oncor is expected to benefit from a "constructive" regulatory environment [3] - Management plans to increase capital investments in the Texas subsidiary by at least 30%, indicating potential upside [3] Group 3: Earnings Growth Projections - Expected EPS growth for Oncor has been raised to approximately 21% for the period 2025-2029, up from 15% previously, while the consolidated company's EPS growth is now projected to exceed 10%, compared to around 9.5% before [4] - Sempra's shares rose by 0.81% to $92.97 at the time of publication [4]