What Makes Entergy (ETR) a New Buy Stock

Core Viewpoint - Entergy (ETR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The upgrade in Entergy's rating suggests an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [4][9]. - For the fiscal year ending December 2025, Entergy is expected to earn $3.89 per share, with a slight increase of 0.1% in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6][8]. - The upgrade of Entergy to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].