Entergy Corporation (NYSE:ETR) is one of the Best Conservative Stocks to Buy Right Now. On March 17, analyst Neil Kalton of Wells Fargo maintained a “Buy” rating on the company’s stock, with a price objective of $119.00. The rating is backed by the factors that hint at durable earnings growth and undervaluation. Wells Fargo Maintains Buy Rating on Entergy (ETR) Stock The analyst noted the views of management that new energy service agreements, along with combined-cycle gas generation projects, and expect ...

In this article, we will discuss the Conservative Stock Portfolio: 7 Best Stocks to Buy Right Now.On March 24, Reuters reported that Barclays raised its 2026 year-end S&P 500 target on the heels of robust corporate earnings, thanks to the broader technology sector and resilience in economic growth. These factors are likely to mitigate the increased ‌macro risks, such as Middle East tensions, uncertainty around AI, and worries across the private credit markets. Notably, Barclays expects the index to reach 7, ...

Investors might want to bet on Entergy (ETR) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changing earning ...

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the Power & Utilities sector, highlighting the impact of AI on various companies and segments within the industry, including utilities, power producers, EPC/industrial firms, and renewables [1][2][3][4]. Utilities Sector - Electric demand growth is projected to increase by 2-3% annually, driven mainly by data centers, which is creating a challenge for consumer affordability and grid reliability [2]. - A new trend of "socially responsible" data center contracts is emerging, where hyperscalers are shifting from being price-makers to price-takers, agreeing to cover their generation costs [2]. - Regulated utilities that can manage flat customer bills while investing in infrastructure are well-positioned to benefit from this growth [2]. - Key companies in this sector include Entergy (ETR), NiSource (NI), Xcel Energy (XEL), and American Electric Power (AEP) [2]. Power Sector - Incumbent power producers are generating strong cash flows and securing long-term contracts, which is a shift from previous cycles [3]. - Companies are rewarding shareholders through buybacks and pursuing M&A opportunities while maintaining modest leverage levels [3]. - The need for additionality in power generation is becoming critical, leading to a more balanced operational profile [3]. - Notable companies include NRG (growth) and Vistra (VST) [3]. EPC/Industrial Sector - The construction of natural gas power plants and transmission lines is becoming increasingly critical, leading to pricing power for EPC firms [4]. - There is a heightened risk of execution due to limited availability of essential equipment and skilled labor, but this is also expanding margins and creating backlogs [4]. - Companies like Quanta Services (PWR) are positioned to benefit from utility capital expenditure upcycles [4]. Renewables Sector - The renewable energy sector is seen as a solution to grid constraints, with hyperscalers financing their own clean energy infrastructure [4]. - Solar and storage technologies are highlighted as the most cost-effective and rapid deployment options [4]. - The demand for localized clean energy solutions remains strong, despite some challenges with utility-scale battery optimization [4]. - NextPower (NXT) is identified as a standout investment opportunity in the clean energy space [4]. Company-Specific Insights - **NiSource (NI)**: Implementing a "GenCo" structure in Indiana, expected to yield significant returns and savings for residential customers [7]. - **Entergy (ETR)**: Anticipating over 11% EPS growth driven by infrastructure developments from major tech companies [8]. - **Xcel Energy (XEL)**: Offers a low-cost, diversified footprint and is well-positioned for decarbonization [9]. - **American Electric Power (AEP)**: Has a strong data center pipeline and has secured large-load tariffs to protect ratepayers [10]. - **Vistra (VST)**: Successfully contracting its generation portfolio with major tech firms, showing resilience in a challenging market [11]. - **NRG Energy (NRG)**: Positioned for growth in Texas with a strong free cash flow yield, despite facing investor attention challenges [12]. - **Quanta Services (PWR)**: Benefiting from construction capabilities and utility capital expenditure opportunities [13]. - **GE Vernova (GEV)**: Viewed positively due to federal support for additionality in energy generation [14]. - **NextPower (NXT)**: Positioned as a lower-risk investment in clean energy with significant market cap and repurchase plans [16]. Conclusion - The Power & Utilities sector is undergoing significant transformations driven by AI and changing market dynamics, with various companies positioned to capitalize on these trends. The focus on sustainability and infrastructure development is critical for future growth and investment opportunities [1][2][3][4].

Company Overview - Entergy Corporation (ETR) is valued at a market cap of $47.3 billion and is based in New Orleans, Louisiana, providing electric power production and retail distribution services [1]. Market Position - ETR is classified as a "large-cap stock" due to its market cap exceeding $10 billion, highlighting its size, influence, and dominance in the regulated electric utilities industry [2]. Strategic Initiatives - The company is undergoing a strategic transformation focused on grid resilience and a clean energy transition, with a goal of achieving net-zero carbon emissions by 2050. It has also secured major service agreements with large-scale data center operators to promote regional economic growth [2]. Stock Performance - ETR's shares are currently trading 2.2% below their 52-week high of $107.93, reached on March 2. Over the past three months, ETR shares have increased by 14.1%, outperforming the Dow Jones Industrial Average, which has seen a 4% decline during the same period [3]. - Year-to-date, ETR shares are up 14%, while the Dow Jones Industrial Average has fallen by 3.2%. Over the past 52 weeks, ETR has surged 27.2%, compared to a 14% increase in the Dow Jones Industrial Average [5]. Technical Indicators - ETR has been trading above its 200-day moving average for the past year and has remained above its 50-day moving average since mid-January, confirming a bullish trend [5]. Earnings Performance - Following its Q4 earnings release, ETR's shares advanced by 1.8%. The company's adjusted EPS of $0.51 represents a 22.7% decline from the same period last year but aligns with analyst estimates. ETR has initiated its fiscal 2026 adjusted EPS guidance in the range of $4.25 to $4.45 [7]. Competitive Landscape - ETR has underperformed its rival, American Electric Power Company, Inc. (AEP), which has seen a 28.2% increase over the past 52 weeks and a 15.9% rise year-to-date [7]. Analyst Sentiment - Analysts maintain a highly optimistic outlook for ETR, with a consensus rating of "Strong Buy" from 22 analysts. The mean price target of $109.53 suggests a 3.7% premium to current price levels [8].

Industry Overview - Nuclear energy is increasingly recognized as a critical solution for meeting the rising demand for clean electricity, providing dependable, carbon-free generation unlike weather-dependent sources such as solar and wind [1][2] - The U.S. aims to expand nuclear capacity from approximately 100 gigawatts (GW) in 2024 to about 400 GW by 2050, supporting global decarbonization goals [3] - Favorable regulations and ongoing research and development (R&D) in advanced Small Modular Reactors (SMRs) are strengthening the outlook for the nuclear sector [4] Investment Opportunities - Nuclear energy-related stocks, such as Entergy Corporation, Nano Nuclear Energy Inc., and NexGen Energy, are becoming attractive investment options due to their stable energy output [5][7] - Entergy Corporation's nuclear plants generated around 21% of its total power capacity as of December 31, 2025, and the company plans to invest $43 billion from 2026 to 2029 to transition its generation fleet and expand its zero-carbon generation portfolio [8][11] - Nano Nuclear Energy Inc. is advancing its KRONOS microreactor technology and has a growing pipeline of potential commercial customers [12][14] - NexGen Energy is positioned to benefit from rising uranium demand, with its Rook I project expected to produce up to 30 million pounds of uranium annually once operational around 2030 [15][16] Market Dynamics - The increasing demand for reliable 24/7 clean power from AI data centers, manufacturing reshoring, and electric vehicles is creating new growth opportunities for the nuclear sector [4][10] - Government initiatives to boost domestic uranium supply are further supporting the momentum of the nuclear energy sector [4] - The nuclear energy sector's ability to provide consistent and stable energy output, along with its systematic approach to waste management, distinguishes it from other clean energy sources [6]

Core Viewpoint - Entergy Corporation (NYSE:ETR) is recognized as one of the best-performing nuclear energy stocks, with multiple analysts raising their price targets for the company recently [1]. Group 1: Analyst Ratings and Price Targets - Evercore ISI raised Entergy's share price target to $107 from $101 while maintaining an In Line rating on March 5th [2]. - Morgan Stanley increased Entergy's price target to $98 from $91, keeping an Equal Weight rating on February 20th [2]. - Bank of America raised the target to $103 from $97 with a Neutral rating on February 13th, while BMO Capital increased it to $112 from $104, maintaining an Outperform rating [3]. Group 2: Company Overview - Entergy Corporation is one of the largest regulated utilities in America, generating electricity from nuclear, coal, gas, and other sources [4].

Core Insights - Entergy announced approximately $5 billion in total savings for 2.3 million customers in Arkansas, Louisiana, and Mississippi due to data center agreements, projected over the next 20 years [1][2] - The company emphasizes a public-private partnership that aims to create jobs, improve community infrastructure, and provide lower-cost power for customers [1][2] Economic and Energy Benefits - Data center projects by major technology companies are expected to generate around $47 billion in new investments, thousands of high-tech jobs, and millions in tax revenues [1][2] - Entergy Mississippi customers are projected to save over $2 billion due to new agreements, which will also enhance grid improvements without additional costs to existing customers [1][2] - Entergy Arkansas anticipates up to $1.7 billion in savings for its customers, supported by new projects from Google and Avaio Digital [1][2] - Entergy Louisiana's agreements are expected to yield approximately $800 million in savings, with Meta's contributions leading to a 10% reduction in storm recovery and grid resilience costs [1][2] State Oversight and Customer Protection - Entergy has structured agreements with data center companies to ensure they cover direct power costs and provide benefits for existing customers, with state public service commissions overseeing these arrangements [2] - The "Fair Share Plus" principles ensure data centers pay their fair share while providing additional savings for existing customers, emphasizing strong regulatory oversight and maintaining grid reliability [2][3] - The agreements include provisions for prepayment, multi-year contracts, and collateral requirements to protect existing customers from financial risks [2][3] Customer Savings Calculation - Customer savings are calculated by comparing expected data center revenues to the incremental costs of serving them, including infrastructure investments and regulatory requirements [3]

Market Overview - Wall Street experienced a strong bull run over the past three years, but 2026 has shown mixed results for U.S. stock markets, with increased volatility observed in February due to several factors [1][4][5][6]. Investment Strategy - Investment in low-beta stocks (beta >0<1) with high dividend yields (>2%) and a favorable Zacks Rank is recommended. These stocks can capture upside potential if markets recover and minimize losses if the downtrend continues [2]. Stock Picks - Five recommended stocks include The Hershey Co. (HSY), BHP Group Ltd. (BHP), Rio Tinto Group (RIO), Atmos Energy Corp. (ATO), and Entergy Corp. (ETR). Each stock carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [3]. The Hershey Co. (HSY) - HSY is focused on innovation, supply-chain agility, and commercial execution, particularly in the snacking category. The company has a beta of 0.14 and a current dividend yield of 2.46% [9][12]. - Expected revenue and earnings growth rates for HSY are 4.8% and 29.3%, respectively, with a 16.7% improvement in the earnings estimate over the last 30 days [12]. BHP Group Ltd. (BHP) - BHP reported a 1% dip in iron ore output but a 4% increase in copper production in Q1 of fiscal 2026. The company projects iron ore production of 258-269 million tons for fiscal 2026 [13][14]. - BHP's expected revenue and earnings growth rates are -1.5% and 32.7%, respectively, with a 0.8% improvement in the earnings estimate over the last seven days. The company has a beta of 0.64 and a current dividend yield of 2.91% [15]. Rio Tinto Group (RIO) - RIO is involved in various mining operations globally and has an expected revenue growth rate of 10.7% and an earnings growth rate of 21.8% for the current year. The earnings estimate has improved by 1.4% over the last seven days [16][17]. - RIO has a beta of 0.53 and a current dividend yield of 2.97% [17]. Atmos Energy Corp. (ATO) - ATO benefits from rising natural gas demand and strategic acquisitions, with an expected revenue growth rate of 18.8% and an earnings growth rate of 9% for the current year. The earnings estimate has improved by 0.6% over the last 30 days [18][20]. - ATO has a beta of 0.74 and a current dividend yield of 2.14% [20]. Entergy Corp. (ETR) - ETR plans to invest $41 billion from 2026 to 2029 to upgrade infrastructure and support renewable energy expansion. The company has an expected revenue growth rate of 6.5% and an earnings growth rate of 12.5% for the current year [21][22]. - ETR has a beta of 0.64 and a current dividend yield of 2.39% [22].

Core Insights - The demand for clean electricity is accelerating globally, driven by structural trends and technological advancements, making utility companies like AES Corporation and Entergy Corporation attractive investment opportunities due to their positioning in the energy transition [1][3] Group 1: Industry Trends - The rapid growth of AI-powered data centers is increasing the demand for consistent electricity supplies, impacting the grid significantly [2] - The transition to renewable energy is transforming the U.S. utilities landscape, with supportive climate policies and federal incentives fostering stable, long-term growth for leading utilities [3] Group 2: AES Corporation - AES is strategically investing in clean energy solutions, including energy storage and utility-scale renewables, which present long-term growth opportunities [5] - The company is retiring coal-fired units to reduce carbon emissions and has made significant progress in its coal generation exit initiatives [6] - AES has a current return on equity (ROE) of 18.83%, outperforming Entergy and the industry average [12] Group 3: Entergy Corporation - Entergy is investing nearly $43 billion from 2026 to 2029 to modernize its portfolio and achieve net-zero carbon emissions by 2050 [7] - The company is leveraging modern technologies, including AI, to enhance its renewable energy operations and improve grid management [8] - Entergy's long-term earnings growth rate is estimated at 11.5%, with a current ROE of 10.89% [12] Group 4: Financial Performance - The Zacks Consensus Estimate for AES' 2026 earnings per share (EPS) indicates a growth of 0.84%, while Entergy's EPS estimate shows a 0.23% increase [9][11] - In the past three months, AES shares have increased by 16.8%, while Entergy shares have risen by 9.5% [13] - AES offers a dividend yield of 4.33%, significantly higher than Entergy's 2.42% and the S&P 500 average of 1.08% [14] Group 5: Valuation Comparison - AES shares are trading at a forward Price/Earnings (P/E) ratio of 6.74X, making it more attractive compared to Entergy's 23.61X [15] Group 6: Investment Preference - Current preference leans towards AES due to its superior earnings growth, higher ROE, more attractive dividend yield, and better valuation compared to Entergy [17]