The share price of
) reached a 52-week high of $73.27 during intraday trading on Apr
16, 2014, finally closing at $72.01. With a market cap of roughly
$12.9 billion, Entergy shares have increased 18.0% so far this
year. The average volume traded over the last three months is
around 1.7 million.
ENTERGY CORP (ETR): Free Stock Analysis
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This multi-state utility company recently provided a robust
outlook for the first quarter 2014 as well as boosted its 2014
earnings guidance. The optimistic forecast is the result of
higher wholesale electricity prices owing to cold winter weather
and limitations of pipeline infrastructure in the Northeast U.S.
Entergy now expects first quarter operational earnings to be
about $2.28 per share, significantly higher than the year-ago
profit of 94 cents per share. On an as-reported basis, Entergy
expects earnings of $2.23 per share for the first quarter. For
2014, the company raised its bottom line outlook to $5.55-$6.75
from its previous expectation of $4.60-$5.40.
The company, which is slated to report its first quarter earnings
on Apr 24, is anticipating superior results in both its divisions
- Entergy Wholesale Commodities and Utility. However, Entergy's
fourth quarter 2013 earnings had dropped approximately 42% year
over year on higher total operating expenses as well as an
increase in shares outstanding.
Given its geographically-diversified mix of regulated and
merchant operations, the company is insulated from regulatory
bottlenecks and power-price volatility in any particular region.
Again, Entergy's plans to realign its operations to optimize
resource-utilization will help the company to meet its goal of
annual compound earnings growth of 6% in the next five years
while boosting margins.
The company is currently trading at a forward price-to-earnings
(P/E) ratio of 13.4x, which is lower than the peer average of
15.4x. Its return on equity is 10.4%, higher than the peer
average of 9.2%.
Entergy currently has a Zacks Rank #2 (Buy). Some better-ranked
stocks in the same industry include
Public Service Enterprise Group Inc.
NRG Energy, Inc.
NRG Yield, Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).