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) to Your Portfolio Right Now
Read MoreHide Full Article
Entergy Corporation’s (ETR - Free Report) strategic long-term investment plans to maintain utility support and upgrade distribution and transmission will further boost its performance. Given its growth opportunities, ETR makes for a solid investment option in the utility sector.
Let’s explore the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for Entergy’s 2024 earnings per share (EPS) has increased 0.7% to $7.22 in the past 90 days.
The Zacks Consensus Estimate for 2024 sales is pinned at $13.35 billion, indicating year-over-year growth of 1.7%.
The company’s long-term (three-to-five-year) earnings growth is 6.43%. It delivered an average earnings surprise of 4.4% in the last four quarters.
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 10.77%, higher than the industry’s average of 7.01%. This indicates that the company has been utilizing its funds more constructively than its peers in the electric power utility industry.
Solvency
The times interest earned ratio is a solvency ratio. It is used to measure how well the company can cover its interest obligations. The times interest earned ratio at the end of third-quarter 2023 was 2.8, which being greater than one indicates that ETR is in a good position to meet its interest obligations.
Dividend History
The company has been consistently paying dividends to its shareholders. In October 2023, its board of directors approved a 5.6% increase in its quarterly dividends. The revised quarterly dividend is $1.13 per share. The company’s new annualized dividend rate is $4.52 compared with the previous annual rate of $4.28 per share. Its current dividend yield is 4.41%, better than the Zacks S&P 500 Composite’s 1.37%.
Systematic Investments
Entergy has a capital investment plan worth $16 billion to maintain utility support and upgrade distribution and transmission during the 2023-2026 period. Out of which, $7 billion is for transmission and distribution. The company is also developing its capital investment plan for the 2024-2026 period and currently anticipates making approximately $19.6 billion in capital investments during that period.
Price Performance
In the past six months, Entergy’s shares have gained 4.2% against the industry’s decline of 7.9%.
NRG Energy’s long-term earnings growth rate is 13.75%. The company delivered an average earnings surprise of 4.7% in the last four quarters.
Consolidated Edison’s long-term earnings growth rate is 2%. The Zacks Consensus Estimate for the company’s 2024 EPS is pinned at $5.29, implying a year-over-year increase of 5.5%.
OGE Energy’s long-term earnings growth rate is 3.65%. The company delivered an average earnings surprise of 8.3% in the last four quarters.
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) to Your Portfolio Right Now
Entergy Corporation’s (ETR - Free Report) strategic long-term investment plans to maintain utility support and upgrade distribution and transmission will further boost its performance. Given its growth opportunities, ETR makes for a solid investment option in the utility sector.
Let’s explore the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for Entergy’s 2024 earnings per share (EPS) has increased 0.7% to $7.22 in the past 90 days.
The Zacks Consensus Estimate for 2024 sales is pinned at $13.35 billion, indicating year-over-year growth of 1.7%.
The company’s long-term (three-to-five-year) earnings growth is 6.43%. It delivered an average earnings surprise of 4.4% in the last four quarters.
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 10.77%, higher than the industry’s average of 7.01%. This indicates that the company has been utilizing its funds more constructively than its peers in the electric power utility industry.
Solvency
The times interest earned ratio is a solvency ratio. It is used to measure how well the company can cover its interest obligations. The times interest earned ratio at the end of third-quarter 2023 was 2.8, which being greater than one indicates that ETR is in a good position to meet its interest obligations.
Dividend History
The company has been consistently paying dividends to its shareholders. In October 2023, its board of directors approved a 5.6% increase in its quarterly dividends. The revised quarterly dividend is $1.13 per share. The company’s new annualized dividend rate is $4.52 compared with the previous annual rate of $4.28 per share. Its current dividend yield is 4.41%, better than the Zacks S&P 500 Composite’s 1.37%.
Systematic Investments
Entergy has a capital investment plan worth $16 billion to maintain utility support and upgrade distribution and transmission during the 2023-2026 period. Out of which, $7 billion is for transmission and distribution. The company is also developing its capital investment plan for the 2024-2026 period and currently anticipates making approximately $19.6 billion in capital investments during that period.
Price Performance
In the past six months, Entergy’s shares have gained 4.2% against the industry’s decline of 7.9%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are NRG Energy (NRG - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Consolidated Edison (ED - Free Report) and OGE Energy (OGE - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NRG Energy’s long-term earnings growth rate is 13.75%. The company delivered an average earnings surprise of 4.7% in the last four quarters.
Consolidated Edison’s long-term earnings growth rate is 2%. The Zacks Consensus Estimate for the company’s 2024 EPS is pinned at $5.29, implying a year-over-year increase of 5.5%.
OGE Energy’s long-term earnings growth rate is 3.65%. The company delivered an average earnings surprise of 8.3% in the last four quarters.