Headquartered in Louisiana, Entergy Corporation (ETR) is a leading utility company that focuses on electric power production and retail distribution. With a market cap of $25.1 billion, it operates a regulated generation fleet through its utility subsidiaries in Arkansas, Louisiana, Mississippi, and Texas.
Shares of the prominent utility company have lagged behind the broader market over the past year. While ETR stock has surged 23.9% over this time frame, the S&P 500 Index ($SPX) has rallied by 28.3%. In 2024 alone, the stock rose 17%, compared to SPX’s 17.6% return on a YTD basis.
Narrowing the focus, ETR has also underperformed the Virtus Reaves Utilities ETF (UTES), which has gained 25.3% over the past year.
On Aug. 1, Entergy reported strong Q2 earnings and notable regulatory progress despite challenges from Hurricane Beryl and rising financial obligations, leading to a 4.2% boost in its stock price. The company exceeded EPS expectations by 8.5% but fell short of revenue forecasts. Looking ahead, Entergy anticipates full-year earnings between $7.05 and $7.35 per share.
For the current fiscal year, ending in December, analysts expect Entergy’s EPS to rise 6.5% year over year to $7.21. Nonetheless, the company’s earnings surprise history is mixed, exceeding the consensus estimate in two of the last four quarters while missing on two other occasions.
Entergy stock has a consensus “Moderate Buy” rating overall. Out of 17 analysts covering the stock, 10 recommend a "Strong Buy," one suggests a “Moderate Buy,” five suggest a "Hold," and one advises a "Strong Sell.”
The configuration is slightly less bullish than three months ago, with 11 analysts suggesting a “Strong Buy.”
On Aug. 12, JP Morgan (JPM) analyst Jeremy Tonet maintained an “Overweight” rating on Entergy and raised the price target from $131 to $141, also the Street-high target price. This implies a 19.1% upside potential.
Entergy’s mean price target of $122.20 suggests a premium of 3.2% from the current price level.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
