Core Insights - Entergy Corporation (ETR) is focused on creating a more resilient and sustainable energy system, planning to invest $41 billion from 2026 to 2029, making it a strong investment option in the Zacks Utility-Electric Power industry [1] Growth Outlook - The Zacks Consensus Estimate for ETR's 2025 earnings per share (EPS) has increased by 0.26% to $3.90 over the past 60 days [2] - The revenue estimate for 2025 is $12.52 billion, indicating a growth of 5.40% from the 2024 reported figure [2] - ETR's long-term earnings growth rate is projected at 10.21% [2] - The company has consistently beaten earnings estimates in the last four quarters, with an average surprise of 14.30% [2] Capital Return Program - ETR has been enhancing shareholder value through consistent dividend payments, currently offering a quarterly dividend of 64 cents per share, which translates to an annualized dividend of $2.56 [3] - The current dividend yield stands at 2.74%, outperforming the Zacks S&P 500 composite average of 1.12% [3] Capital Investment Focus - Entergy's capital investment plan of $41 billion for 2026-2029 aims to modernize infrastructure and transition to a more diverse, decarbonized, and sustainable energy portfolio [4] - Of this investment, $16 billion is allocated for grid modernization, which includes upgrades to transmission and distribution systems, enhancing reliability and supporting renewable expansion [5] - Another $16 billion is designated for generation projects aimed at modernizing, decarbonizing, and diversifying power sources [5] Financial Metrics - ETR's Return on Equity (ROE) is currently at 11.53%, exceeding the industry average of 9.95% [6] - The times interest earned (TIE) ratio at the end of Q3 2025 was 2.8, indicating the company's ability to meet long-term debt obligations [7] Share Price Performance - Over the past year, ETR's shares have increased by 24.2%, outperforming the industry's growth of 17.8% [10]

Group 1: Market Overview - Tech stocks that had been driving the market rally are now weighing on Wall Street, with significant declines observed in major indices such as the Dow, S&P 500, and Nasdaq [1][4] - Concerns over high valuations and ongoing market volatility have led investors to shun riskier assets, particularly in the tech sector [1][6] Group 2: Defensive Investment Recommendations - In light of market volatility, it is advisable to invest in defensive stocks from the utilities sector, such as American States Water Company, Ameren Corporation, and Entergy Corporation, all of which carry a Zacks Rank 2 (Buy) [2] - The recommended approach is to focus on low-beta stocks with high dividend yields and favorable Zacks rankings [3] Group 3: Company Profiles - **American States Water Company (AWR)**: Provides fresh water, wastewater services, and electricity, with an expected earnings growth rate of 4.7% for the current year and a beta of 0.64, alongside a dividend yield of 2.73% [8][9] - **Ameren Corporation (AEE)**: Generates and distributes electricity and natural gas, serving nearly 2.4 million electric and over 900,000 natural gas customers, with an expected earnings growth rate of 7.8% and a beta of 0.50, offering a dividend yield of 2.70% [10][12] - **Entergy Corporation (ETR)**: Engaged in electric power production and retail distribution, with a generating capacity of 30,000 MW, an expected earnings growth rate of 6.9%, a beta of 0.63, and a dividend yield of 2.68% [13]

Core Insights - Entergy Corporation (ETR) is an integrated energy company with a market cap of $43.3 billion, serving approximately 3 million customers across multiple states [1] - The company has shown strong stock performance, with ETR shares increasing 29.4% over the past 52 weeks, outperforming the S&P 500 Index's 14.5% gain [2] - Entergy's third-quarter earnings report indicated adjusted earnings of $1.53 per share, a slight increase from $1.50 a year earlier, with net income rising to $694 million from $645 million [4] Financial Performance - The utility segment has been the primary earnings driver, benefiting from higher retail sales and favorable regulatory outcomes [4] - Analysts project ETR's EPS to grow 6.9% year-over-year to $3.90 for the fiscal year ending in December 2025 [5] - Entergy has a strong earnings surprise history, beating consensus estimates in the last four quarters [5] Analyst Ratings - Among 21 analysts covering the stock, the consensus rating is a "Moderate Buy," with 14 "Strong Buy" ratings, one "Moderate Buy," and six "Holds" [5] - J.P. Morgan analyst Jeremy Tonet reiterated a "Buy" rating on Entergy with a price target of $113, indicating a potential upside of 20.2% from the Street-high price target of $116 [6]

Core Insights - The utility sector is experiencing a significant transformation driven by the increasing energy demands of artificial intelligence and related technologies, leading to a surge in investor interest [1][2][3] Industry Overview - The Utilities Select Sector SPDR Fund (NYSE:XLU) has increased by 23.4% year-to-date, outperforming the S&P 500 and approaching technology benchmarks [2] - This growth is not attributed to traditional factors like lower interest rates but rather to the rising energy needs from AI, data centers, and quantum computing [3][5] - U.S. data centers are projected to require 22% more grid power by the end of 2025 compared to 2024, and three times as much by 2030 [5] Company Highlights - **Entergy Corporation (NYSE:ETR)**: Trading at $97 per share, up 26.2% year-to-date, with plans to invest $41 billion into operations through 2029 and a long-term earnings growth forecast of 10.2% [11] - **Constellation Energy Corporation (NASDAQ:CEG)**: Trading at $331 per share, up 57% year-to-date, with several data center contracts signed at above-market prices, indicating strong growth potential [12][13] - **Nextera Energy (NYSE:NEE)**: Trading at $81 per share, up 14.3% year-to-date, recognized for its alignment with hyperscalers and a strong focus on renewable energy, offering a dividend yield of over 3% [14][15]

Market Overview - Wall Street's major indexes have reached multiple all-time closing highs recently, but the market has experienced volatility due to economic uncertainties [1][5] - The tech sector, particularly driven by AI optimism, has seen fluctuations, with significant pullbacks in stock prices due to concerns over high valuations [2][6] Economic Concerns - Investors are worried about the health of the economy, particularly with a shrinking labor market and fewer jobs being added [7] - Layoffs surged in October, totaling 153,074, which is a 183% increase sequentially and a 175% increase year-over-year [8] - The ongoing government shutdown has limited access to fresh economic data, contributing to investor uncertainty [9] Defensive Investment Recommendations - In light of market volatility, it is advisable to consider defensive stocks, particularly from the utilities sector, which are characterized by low beta values and high dividend yields [3][4][12] - Five recommended low-beta utility stocks include: - **Atmos Energy Corporation (ATO)**: Expected earnings growth of 6%, beta of 0.73, and a dividend yield of 2.02% [10][11] - **American States Water Company (AWR)**: Expected earnings growth of 4.1%, beta of 0.64, and a dividend yield of 2.72% [13][14] - **Consolidated Water Co. Ltd. (CWCO)**: Expected earnings growth of 0.9%, beta of 0.51, and a dividend yield of 1.61% [15][16] - **Entergy Corporation (ETR)**: Expected earnings growth of 6.9%, beta of 0.63, and a dividend yield of 2.49% [17][18] - **Duke Energy Corporation (DUK)**: Expected earnings growth of 7.3%, beta of 0.45, and a dividend yield of 3.44% [18][19]

Core Viewpoint - The article discusses the recent volatility in the stock market and highlights four companies that have recently increased their dividends, providing potential investment opportunities for cautious investors seeking steady income amidst economic uncertainty [2][3]. Economic Context - Major stock indexes have reached all-time highs, but investor sentiment remains low due to a lack of economic data from the government shutdown, the impact of tariffs imposed by President Trump, and uncertainty regarding a potential interest rate cut by the Federal Reserve [2][4]. - The Federal Reserve recently cut interest rates by 0.25 percentage points, but this did not positively affect stock prices, as Chairman Jerome Powell expressed doubts about further cuts this year [4][5]. - The ongoing government shutdown has deprived investors of key economic data, contributing to fears of a recession as the labor market continues to shrink [6]. Company Highlights - **CDW Corporation**: Announced a dividend of $0.63 per share, with a dividend yield of 1.76%. Over the past five years, CDW has increased its dividend six times, with a payout ratio of 26% of earnings [9][8]. - **California Resources Corporation**: Declared a dividend of $0.41 per share, yielding 3.32%. The company has increased its dividend four times in the last five years, with a payout ratio of 34% of earnings [11][10]. - **Exxon Mobil Corporation**: Announced a dividend of $1.03 per share, yielding 3.47%. Exxon has increased its dividend five times over the past five years, with a payout ratio of 57% of earnings [13][12]. - **Entergy Corporation**: Declared a dividend of $0.64 per share, yielding 2.49%. Entergy has increased its dividend six times in the last five years, with a payout ratio of 59% of earnings [14][12].

Core Insights - Entergy's unit and Energy Transfer have entered into a 20-year agreement for the delivery of natural gas to North Louisiana [1] Company Summary - Entergy's unit is involved in the utility sector, focusing on energy delivery [1] - Energy Transfer operates in the pipeline industry, specializing in the transportation of natural gas [1] Industry Summary - The agreement signifies a long-term commitment to natural gas supply in the North Louisiana region, indicating potential growth in energy infrastructure and demand [1]

Core Viewpoint - Entergy Corporation has elected retired Admiral Frank Caldwell as an independent director, effective November 1, 2025, enhancing the board's expertise in nuclear operations and leadership [1][2]. Group 1: Board Composition and Leadership - With Admiral Caldwell's election, Entergy's board now consists of 12 directors, and he will serve on the nuclear and operations oversight, and talent and compensation committees [2]. - Drew Marsh, Entergy's chair and CEO, emphasized Admiral Caldwell's valuable perspective in meeting customer needs and regional demand [2]. Group 2: Admiral Caldwell's Background - Admiral Caldwell, aged 66, has a distinguished naval career, most recently serving as the director of the Naval Nuclear Propulsion Program from August 2015 until January 2024, overseeing operations for all U.S. Navy nuclear propulsion plants and a team of over 85,000 [3][4]. - His extensive experience includes roles such as director of the U.S. Navy Staff and Commander of the Submarine Force for the U.S. Pacific Fleet [4]. - He holds a bachelor's degree in marine engineering and a master's in operations research, along with numerous military honors [5]. Group 3: Company Overview - Entergy Corporation (NYSE: ETR) provides electricity to approximately 3 million customers across Arkansas, Louisiana, Mississippi, and Texas, focusing on growth, reliability, and affordable energy rates [5]. - The company is investing in cleaner energy generation, including natural gas, nuclear, and renewable sources, and contributes over $100 million annually in economic benefits to its communities [5].

Core Points - Entergy's board of directors declared a quarterly dividend payment of $0.64 per share, an increase of $0.04 per share, payable on December 1, 2025, to shareholders of record as of November 13, 2025 [1] - Entergy has consistently paid cash dividends on its common stock since 1988 [1] Company Overview - Entergy produces, transmits, and distributes electricity to approximately 3 million customers across Arkansas, Louisiana, Mississippi, and Texas [2] - The company is focused on investing for growth, improving reliability and resilience of its energy system, and maintaining affordable energy rates for customers [2] - Entergy is investing in cleaner energy generation, including modern natural gas, nuclear, and renewable energy sources [2] - The company delivers over $100 million in economic benefits annually to the communities it serves through philanthropy, volunteerism, and advocacy [2] - Entergy is a Fortune 500 company headquartered in New Orleans, Louisiana, with around 12,000 employees [2]

Environmental Commitment - Entergy Corporation's commitment to achieve net-zero carbon emissions by 2050, with increasing investments in renewable power generation and carbon capture technologies [24] - Entergy's strategies to reduce tax payments may influence financial results and future cash flows [24] - The company is focused on enhancing its carbon-free energy capacity while managing the associated financial impacts [24] Demand and Growth - The company anticipates significant growth in demand from large data centers, impacting electricity demand and capital project execution [22] - The anticipated load growth may not materialize, posing risks to economic conditions in the Utility service area [24] - Total electric energy sales for the Utility increased by 4% from 39,474 GWh in 2024 to 41,203 GWh in 2025, with residential sales up 2%, commercial sales up 1%, and industrial sales up 7% [46] Financial Performance - Entergy's net income attributable to the corporation for Q3 2025 was $693.8 million, an increase from $644.9 million in Q3 2024, representing a growth of approximately 7.6% [37] - Operating revenues for Entergy increased to $3.797 billion in Q3 2025, up from $3.370 billion in Q3 2024, reflecting a rise of about 12.6% [39] - Other income increased to $79.1 million in Q3 2025, compared to $66 million in Q3 2024, marking a growth of approximately 19.7% [37] Operating Expenses and Costs - The company is facing increased costs and capital expenditures due to changing regulatory requirements and economic conditions [22] - Other operation and maintenance expenses increased from $714 million in Q3 2024 to $764 million in Q3 2025, driven by higher power delivery expenses and compensation costs [47] - Power delivery expenses rose by $44 million primarily due to higher vegetation maintenance costs, while non-nuclear generation expenses increased by $19 million due to a higher scope of work during plant outages in 2025 compared to 2024 [75] Regulatory and Compliance Issues - Entergy's participation in MISO is subject to regulatory and operational challenges, which may affect cost recovery and market conditions [20] - Changes in environmental laws and regulations could affect compliance costs and operational strategies [22] - Entergy is committed to maintaining the reliability of its nuclear generating facilities amidst regulatory scrutiny and public opposition [20] Capital Investments and Projects - Entergy plans to invest approximately $41 billion in capital from 2026 to 2029, including $12 billion in 2026 and $11 billion in 2027, focusing on modernization and expansion of its Utility operations [107] - Entergy Arkansas filed for a long-term special rate contract with Google for a new data center, with a hearing scheduled for November 2025 [108] - Entergy Louisiana filed for approval of three new combined cycle combustion turbine generation resources totaling 2,262 MW, alongside a new 500 kV transmission line, to support a new data center for Meta Platforms, Inc. [118] Debt and Financing - The debt to capital ratio decreased from 65.3% on December 31, 2024, to 64.3% on September 30, 2025 [96] - Entergy Corporation has a credit facility with a borrowing capacity of $3 billion, with no borrowings made as of September 30, 2025, and an estimated interest rate of 5.76% applicable to potential borrowings [99] - Entergy expects to issue approximately $4.4 billion of equity through 2029, with $1.9 billion already contracted under forward sale agreements [105] Shareholder Returns - The Board declared a dividend of $0.64 per share in October 2025 [132] - The company declared common stock dividends totaling $258,249 for the nine months ended September 30, 2025 [167] Cash Flow and Liquidity - Net cash provided by operating activities increased by $823 million for the nine months ended September 30, 2025, compared to the same period in 2024 [134] - Net cash flow used in investing activities increased by $1,209 million for the nine months ended September 30, 2025, primarily due to a $1,712 million increase in non-nuclear generation construction expenditures [136][137] - Entergy had $1,517 million in cash and cash equivalents at the end of the period, up from $1,412 million in 2024 [133] Taxation - The effective income tax rate for Q3 2025 was 22.7%, compared to 25% in Q3 2024, primarily due to state income tax accruals [57][58] - Taxes other than income taxes increased due to higher assessments and local franchise taxes resulting from increased retail revenues in 2025 compared to 2024 [74] Future Outlook - Entergy Arkansas's 2026 projected rate of return on common equity is 8.45%, resulting in a revenue deficiency of $68.9 million, with a total proposed revenue change of $117.7 million [193] - Entergy Louisiana's 2025 test year filing showed an earned return on rate base of 7.64%, with no change in formula rate plan revenues [211] - The company plans to offset the COVID-19 regulatory asset with a regulatory liability for deferred earnings related to low-interest debt, with approval from the LPSC [210]