Spire (SR) is back in focus after its latest second quarter update, where adjusted earnings came in slightly below estimates, revenue declined year over year, and management reset 2026 guidance alongside a new long term capital plan.

Following the earnings reset and long term capital plan, Spire’s recent share price has been choppy, with the stock down over the past quarter but supported by a 1 year total shareholder return of 16.13% and a 5 year total shareholder return of 33.95%.

If this kind of utility update has you thinking about what else is moving, it can be worth scanning 34 power grid technology and infrastructure stocks for other electricity and gas infrastructure stocks that might fit your watchlist.

With Spire trading at $82.38 against a consensus price target of $98.56 and an intrinsic value estimate that sits above today’s market price, you have to ask: is this a genuine opening, or is the market already banking on future growth?

Most Popular Narrative: 16.4% Undervalued

Spire’s most followed narrative pegs fair value at $98.56, comfortably above the last close at $82.38, which puts the current price into sharper context.

Significant and ongoing investments in infrastructure modernization and system resilience, supported by constructive regulatory frameworks and reliable cost recovery mechanisms, are growing Spire's regulated asset base. This should result in higher allowed returns and gradual increases in net income. Enhanced operational efficiencies and disciplined O&M cost management, now running at or below inflation, are expected to improve net margins, supporting sustainable EPS and dividend growth over time.

Want to see what is sitting behind that valuation gap? The narrative leans on compound revenue growth, firmer margins, and a richer future earnings multiple. The exact mix of those levers may surprise you.

Result: Fair Value of $98.56 (UNDERVALUED)

However, this hinges on gas remaining attractive compared with electrification, and on regulators consistently allowing Spire to recover heavy infrastructure and acquisition related spending.

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Another Angle: Cash Flows Paint A Tougher Picture

While the popular narrative sees Spire trading 16.4% below a fair value of $98.56, the SWS DCF model points the other way. It shows an estimated future cash flow value of $72.04 versus the current $82.38 share price. That gap raises a simple question: are cash flows or earnings doing a better job anchoring expectations?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Spire for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 48 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With mixed signals on value, sentiment, and long term plans, the best move is to review the numbers yourself and decide what really matters to you. Then weigh up the 3 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.