New Orleans, Louisiana-based Entergy Corporation (ETR) engages in electricity production and retail distribution in the United States. With a market cap of $27.1 billion, Entergy's power plants have approximately 24,000 megawatts of electric generating capacity.
Companies worth $10 billion or more are generally described as "large-cap stocks," Entergy fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the regulated electricity industry. It delivers electricity to over three million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
Entergy touched its 52-week high of $127.34 on Sep. 13 before slightly pulling back. Entergy has gained 18.7% over the past three months, outpacing the Nasdaq Composite’s ($NASX) marginal gains during the same time frame.
Over the longer term, ETR stock looks even more appealing. ETR gained 30.9% over the past 52 weeks and 25.6% in 2024, outperforming NASX’s 28% gains over the past year and 17.8% returns on a YTD basis.
To confirm the bullish trend, ETR has consistently traded above its 200-day moving average since mid-February and above its 50-day moving average since early March with slight fluctuations.
Entergy’s shares soared by 4.2% on Aug. 1 after the release of its robust Q2 earnings report. The company reported a resilient 3.8% year-over-year growth in total operating revenues, reaching $3 billion.
Due to a significant rise in regulatory charges, which drove total operating expenses up by 11.8% to $2.3 billion, Entergy’s consolidated net income fell sharply to $48.9 million from $391.2 million in the same quarter last year. However, the utilities giant’s adjusted EPS of $1.92 exceeded consensus estimates by 8.5%, reinforcing investor confidence.
Entergy’s competitor, DTE Energy Company (DTE), has underperformed ETR. DTE gained 18.8% over the past 52 weeks and 14.2% on a YTD basis.
Among the 18 analysts covering the ETR stock, the consensus rating is a “Moderate Buy.” Although Entergy is trading above its mean price target of $124.97, the Street-high target of $141 represents a potential upside of 11% from current price levels.
On the date of publication, Aditya Sarawgi 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.
