Here's Why ETR Stock Deserves a Spot in Your Portfolio Right Now
EntergyEntergy(US:ETR) ZACKS·2025-11-21 14:36

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]