Entergy Corporation ETR focuses on building a more resilient and sustainable energy system. The company plans to invest $41 billion during 2026-2029. Given its strong growth and better future expansion plan, ETR makes for a solid investment option in the Zacks Utility-Electric Power industry.
Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
ETR’s Growth Outlook & Surprise History
The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 0.26% to $3.90 in the past 60 days.
The Zacks Consensus Estimate for 2025 revenues is pegged at $12.52 billion, which indicates growth of 5.40% from the 2024 reported figure.
ETR’s long-term (three to five years) earnings growth rate is 10.21%.
ETR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 14.30%.
ETR’s Capital Return Program
ETR has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 64 cents per share, resulting in an annualized dividend of $2.56. ETR’s current dividend yield is 2.74%, better than the Zacks S&P 500 composite's average of 1.12%.
ETR’s Capital Investment Focus
Entergy has a detailed and systematic capital investment plan of $41 billion for 2026-2029 that focuses on modernizing its infrastructure and transitioning to a more diverse, decarbonized and sustainable energy portfolio mix.
Of this total investment, the $16 billion allocated for grid modernization — including transmission and distribution upgrades — should enhance ETR’s reliability and resilience as a utility provider and support renewable expansion and customer growth. The company further allocates $16 billion to generation projects, which aim at modernizing, decarbonizing and diversifying its power sources.
ETR’S Return on Equity
Return on Equity (ROE) indicates how efficiently a company is utilizing shareholders’ funds to generate returns. At present, ETR’s ROE is 11.53%, higher than the industry average of 9.95%.
ETR’s Solvency Ratio
Entergy’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 2.8. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.
ETR’s Share Price Performance
Over the past year, ETR’s shares have risen 24.2%, which beat the industry’s growth of 17.8%.
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Other Stocks to Consider
A few other top-ranked stocks from the same industry are Edison International EIX, Ameren Corporation AEE and FirstEnergy Corp. FE, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EIX’s long-term earnings growth rate is 10.93%. The Zacks Consensus Estimate for 2025 EPS is pegged at $6.10, which suggests year-over-year growth of 23.73%.
AEE’s long-term earnings growth rate is 8.52%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.99, which suggests year-over-year growth of 7.78%.
FE’s long-term earnings growth rate is 6.46%. The Zacks Consensus Estimate for 2025 EPS is pegged at $2.54, which implies a year-over-year decline of 3.42%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Ameren Corporation (AEE) : Free Stock Analysis Report
Entergy Corporation (ETR) : Free Stock Analysis Report
Edison International (EIX) : Free Stock Analysis Report
FirstEnergy Corporation (FE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
