On Jun 3, 2014, shares of
) reached a new 52-week high of $76.27, finally closing at $76.22.
The closing price reflects a gain of almost 14.9% over the past
one-year period. Average volume of shares traded over the last
three months stood at 1,832,390.
Electric utility, Entergy Corporation, a Zacks Rank #2 (Buy)
stock, delivered positive earnings surprises in the last four
quarters with an average beat of 6.15%. The company posted
impressive first-quarter 2014 results with its earnings outpacing
the Zacks Consensus Estimates on higher wholesale electricity
prices owing to a harsh winter and higher revenues from the
northeast nuclear fleet in the U.S.
For 2014, Entergy Corp. raised its operating earnings guidance
to the range of $5.55 to $6.75 per share from $4.60 to $5.40 based
on a strong first quarter, and increased volatility in northeast
Vermont and forward power market prices. The Zacks Consensus
Estimate for 2014 is pegged at $6.16 per share, projecting a
year-over-year improvement of 14.88%.
The cost-cutting efforts of Entergy, strong industrial growth on
the Gulf Coast and improvement in forward power prices in the
Northeast will help the company to sustain its strong performance.
The retail sales growth in its service territories will also
benefit the company.
We appreciate Entergy's steady effort toward reducing debt, thereby
improving margins. In addition, the company's stable cash position
and strong cash-generating ability should help meet the fund
requirements for operational expansion.
Other Stock to Consider
Other better-ranked stocks in the utility sector include
Black Hills Corp.
CPFL Energia S.A.
Korea Electric Power Corp.
). All of these stocks hold a Zacks Rank #1 (Strong Buy).
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ENTERGY CORP (ETR): Free Stock Analysis Report
KOREA ELEC PWR (KEP): Free Stock Analysis
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BLACK HILLS COR (BKH): Free Stock Analysis
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