We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Add Entergy (ETR) Stock to Your Portfolio Now
Read MoreHide Full Article
Entergy Corp. (ETR - Free Report) , with strategic investments in grid upgrades, steady progress in adding renewable generation to its portfolio and rising earnings estimates, offers a great investment opportunity in the utility sector.
Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock a solid investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for ETR’s 2024 earnings per share (EPS), pegged at $7.22, implies an improvement of 6.7% from the 2023 reported figure. The Zacks Consensus Estimate for ETR’s total revenues for 2024 stands at $12.91 billion, which indicates year-over-year growth of 6.3%.
The company’s (three to five years) earnings growth is pegged at 7%.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, Entergy’s ROE is 10.54% compared to its industry’s average of 8.82%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry.
Solvency
Entergy’s times interest earned ratio (TIE) at the end of the fourth quarter of 2023 was 2.6. The TIE ratio being more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
Dividend History
Entergy has been increasing shareholders’ value through solid dividend payments. In January 2024, ETR announced a quarterly dividend of $1.13 per share, resulting in an annual dividend of $4.52 per share. ETR’s current dividend yield is 4.39%, better than the Zacks S&P 500 composite’s yield of 1.29%.
Systematic Investment
ETR continues with systematic investments to upgrade its distribution and transmission infrastructure. For the 2024-2026 period, the company expects to invest $19.6 billion. These investments will help the company deliver reliability and resiliency, improve customers’ experiences and provide environmental and cost-efficiency benefits to its customers.
Price Performance
In the past three months, ETR shares have risen 2.7% against its industry’s decline of 3.4%.
Atmos Energy’s long-term earnings growth rate is pegged at 7.30%. The Zacks Consensus Estimate for the company’s fiscal 2024 sales is pegged at $4.97 billion, which implies a year-over-year increase of 16.3%.
American Water’s long-term earnings growth rate is pegged at 7.8%. The Zacks Consensus Estimate for the company’s 2024 sales stands at $4.26 billion, which calls for a year-over-year increase of 0.6%.
Sempra Energy’s long-term earnings growth rate is pegged at 5%. The Zacks Consensus Estimate for the company’s 2024 sales is pegged at $17.4 billion, which indicates a year-over-year rise of 4.1%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Reasons to Add Entergy (ETR) Stock to Your Portfolio Now
Entergy Corp. (ETR - Free Report) , with strategic investments in grid upgrades, steady progress in adding renewable generation to its portfolio and rising earnings estimates, offers a great investment opportunity in the utility sector.
Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock a solid investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for ETR’s 2024 earnings per share (EPS), pegged at $7.22, implies an improvement of 6.7% from the 2023 reported figure. The Zacks Consensus Estimate for ETR’s total revenues for 2024 stands at $12.91 billion, which indicates year-over-year growth of 6.3%.
The company’s (three to five years) earnings growth is pegged at 7%.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, Entergy’s ROE is 10.54% compared to its industry’s average of 8.82%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry.
Solvency
Entergy’s times interest earned ratio (TIE) at the end of the fourth quarter of 2023 was 2.6. The TIE ratio being more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
Dividend History
Entergy has been increasing shareholders’ value through solid dividend payments. In January 2024, ETR announced a quarterly dividend of $1.13 per share, resulting in an annual dividend of $4.52 per share. ETR’s current dividend yield is 4.39%, better than the Zacks S&P 500 composite’s yield of 1.29%.
Systematic Investment
ETR continues with systematic investments to upgrade its distribution and transmission infrastructure. For the 2024-2026 period, the company expects to invest $19.6 billion. These investments will help the company deliver reliability and resiliency, improve customers’ experiences and provide environmental and cost-efficiency benefits to its customers.
Price Performance
In the past three months, ETR shares have risen 2.7% against its industry’s decline of 3.4%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks related to the same sector are Atmos Energy (ATO - Free Report) , American Water Works (AWK - Free Report) and Sempra Energy (SRE - Free Report) , each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Atmos Energy’s long-term earnings growth rate is pegged at 7.30%. The Zacks Consensus Estimate for the company’s fiscal 2024 sales is pegged at $4.97 billion, which implies a year-over-year increase of 16.3%.
American Water’s long-term earnings growth rate is pegged at 7.8%. The Zacks Consensus Estimate for the company’s 2024 sales stands at $4.26 billion, which calls for a year-over-year increase of 0.6%.
Sempra Energy’s long-term earnings growth rate is pegged at 5%. The Zacks Consensus Estimate for the company’s 2024 sales is pegged at $17.4 billion, which indicates a year-over-year rise of 4.1%.