LQAI0.600%
as of Jul 17
SRE
DefensiveSEMPRA
Sempra engages in the regulated utilities business in the United States and Mexico. It operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. It also invests in and operates electric and gas utilities and other energy infrastructure that provides energy services to customers.
Close · 3M
-3.02%
Held by 2 AI ETFs
PQUS0.340%
as of Jul 21
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals5
Win rate0% (0/5)
Avg buy return-2.95%
LQAI · Weight increase · 2d
The LG-Qraft collaboration's AI engine for LQAI, which applies its ranking to a ~100 US large-cap core universe with weekly rebalances, initiated a position in Sempra (SRE) on July 7th, then slightly increased its weight by July 8th. This AI-driven name selection, characteristic of LQAI's core large-cap style without heavy factor tilts, suggests the Qraft algorithm identified specific signals for SRE's inclusion. Despite the company's modest 0.05% revenue growth, the AI's model likely prioritized other factors. The fund's decision aligns with SRE's sustained market performance, evident in its 1-year return of +27.1% and its current price trading at 96% of its 52-week high.
weight 0 → 0.610% (new)·stock up 4.3% in the 30 days before
Jul 8·entry $95.33·now $90.69Fresh
-4.87%
since Jul 8
LQAI · New entry · 1d
LQAI's Qraft AI ranking, applied to its US large-cap core universe, prompted the new entry of SRE with a 0.6000% weight during the 2026-07-07 weekly rebalance. Although SRE reports modest revenue growth of 0.05%, its one-year return stands at +24.3%, signaling positive momentum that the AI likely incorporated into its selection. This move aligns with LQAI’s style of AI-driven name selection without a heavy factor tilt, balancing various signals to arrive at its approximately 100 holdings. The AI's model identified SRE as a suitable addition at its current $94.59 price, near 95% of its 52-week high.
weight 0 → 0.600% (new)·stock up 4.7% in the 30 days before
Jul 7·entry $94.59·now $90.69Fresh
-4.12%
since Jul 7
PQUS · Weight increase · 2d
SRE's current financial profile, characterized by a 30.81 PER, 1.82 PBR, 0.05% revenue growth, and 6.18% ROE, points to a mature utility company with modest organic expansion. Despite its lower growth figures, Pictet Asset Management's AI ranking system for PQUS, which operates within a US large-cap universe and applies sector-balance and concentration rules, likely re-evaluated SRE's portfolio contribution. The consecutive weight increases on July 17th and 18th, 2026, occurred as SRE traded at $92.25, near 92% of its 52-week high, following a recent 30-day return of +2.1%. This suggests the AI, managing a newer fund with a measured turnover style, perceived the company's sustained 1-year return of +24.0% and recent positive price momentum as a signal for increased allocation within the utilities sector.
weight 0.300% → 0.340% (+0.040 pp)·stock up 0.5% in the 30 days before
Jul 18·entry $90.69·now $90.69Fresh
0.00%
since Jul 18
PQUS · Weight increase · 2d
The AI likely increased SRE's weight consecutively due to its defensive utilities sector characteristics and stable cash flows, indicating a strategic move towards lower volatility or a positive long-term outlook for its regulated business despite the higher PER. Retail investors should view this as a potential signal of broader market caution or a specific positive thesis on SRE's stability, prompting them to assess their own portfolio's defensive allocation and research company-specific drivers beyond basic financials.
weight 0.130% → 0.150% (+0.020 pp)·stock down 2.1% in the 30 days before
Apr 30·entry $95.12·now $90.69Fresh
-4.66%
since Apr 30
QRFT · Exit · 1d
SRE's financial metrics, including a PER of 30.39, PBR of 1.82, revenue growth of 0.05%, and ROE of 6.18%, present a picture inconsistent with strong fundamental factors often considered by investment algorithms. QRFT, managed by Qraft AI combining traditional factors with proprietary alternative data, likely identified these figures as misaligned with its broad large-cap core style, which emphasizes diversification but also underlying quality and value characteristics. Despite a positive 1-year return of 14.5%, the recent 30-day return of -3.9% coupled with the stock trading at $89.55, near 90% of its 52-week high, could have triggered a re-evaluation of its valuation relative to its weak profitability and growth. The Qraft AI, through its weekly rebalancing mechanism, initiated a reduction from 0.1300% to 0.1200% on 2026-06-01, leading to its full removal from the QRFT portfolio on 2026-06-02, reflecting a dynamic adjustment based on these evolving data points.
weight 0.120% → 0 (exited)·stock down 5.4% in the 30 days before
Jun 2·entry $89.55·now $90.69
+1.27%
since Jun 2
QRFT · New entry · 1d
weight 0 → 0.140% (new)·stock down 1.3% in the 30 days before
Mar 20·entry $91.72·now $90.69Fresh
-1.12%
since Mar 20
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of Jul 19
AI ETFs LQAI and PQUS show recent accumulation and increased weighting in Sempra, signaling a positive outlook on the company. This action contrasts with the framework's 'Fail' verdict, which identifies significant concerns regarding Sempra's financial health and current valuation, indicating a divergent investment thesis.
- Circle of CompetenceThe regulated nature and essential services of a multi-utility company like Sempra provide stable unit economics, allowing for reasonable long-term cash flow projections.
- Economic MoatSempra benefits from a durable economic moat through regulatory entitlements, high capital barriers to entry, and exclusive operating territories for its essential utility services.
- ManagementThe provided financial snippets do not contain enough information to assess management's candor, capital allocation discipline, or ownership stakes.
- Financial HealthThe most recent Return on Equity (ROE) of 6.18% falls significantly short of the framework's requirement for consistent double-digit ROE performance.
- Margin of SafetyThe high PER of 30.81 and PBR of 1.82, combined with low ROE and minimal revenue growth, indicate that the current market price does not offer a defensible margin of safety.
Sempra aligns well with the framework's criteria for predictable business operations and a strong economic moat. However, it fails on critical measures of financial health due to a low Return on Equity and does not offer a margin of safety at its current valuation, leading to an overall 'Fail' verdict.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.