Valued at a market cap of $32.3 billion, Entergy Corporation (ETR) is a leading energy company that generates, transmits, and distributes electricity to customers in Arkansas, Louisiana, Mississippi, and Texas. With a diverse generation fleet and a presence in regulated utility operations and wholesale energy markets, Entergy serves millions of customers across multiple power sources.
Shares of the New Orleans, Louisiana-based company have outperformed the broader market over the past 52 weeks. ETR stock has surged 52.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 30.1%. In 2024, shares of ETR are up 48.9%, compared to SPX's 24.1% gain on a YTD basis.
Looking closer, the power company has also outpaced the Utilities Select Sector SPDR Fund's (XLU) 29.6% return over the past 52 weeks and a 27.1% YTD gain.
Despite a Q3 revenue miss of $3.4 billion, shares of Entergy climbed 15.2% on Oct. 31 because the company reported a higher-than-expected adjusted profit of $2.99 per share, surpassing analysts' estimates. Additionally, lower costs and higher service rates helped offset the negative impact of Hurricane Francine on its operations. Entergy's full-year profit forecast of $7.15 per share to $7.35 per share also exceeded analysts' expectations, providing further confidence to investors.
For the current fiscal year, ending in December, analysts expect ETR's EPS to grow 6.5% year-over-year to $7.21. The company's earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing on two other occasions.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”
This configuration is slightly more bullish than three months ago, with 10 “Strong Buy” ratings on the stock.
On Nov. 5, Barclays analyst Nicholas Campanella increased the price target for Entergy to $152, while maintaining an “Overweight" rating on the stock.
As of writing, ETR is trading above the mean price target of $148.64. The Street-high price target of $170 implies a potential upside of 12.8%.
