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Here's Why ETR Stock Deserves a Spot in Your Portfolio Right Now

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Key Takeaways

  • ETR's 2025 EPS estimate rose to $3.90, with revenues expected to grow 5.40% from 2024.
  • The company plans $41B in 2026-2029 investments for grid upgrades and generation projects.
  • ETR has 8,600 MW of renewable projects operational or approved, supporting its clean-energy shift.

Entergy Corporation (ETR - Free Report) focuses on building a more resilient and sustainable energy system. The company plans to invest $41 billion during 2026-2029. Given its strong growth and better future expansion plan, ETR makes for a solid investment option in the Zacks Utility-Electric Power industry.

Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.

ETR’s Growth Outlook & Surprise History

The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 0.26% to $3.90 in the past 60 days. 

The Zacks Consensus Estimate for 2025 revenues is pegged at $12.52 billion, which indicates growth of 5.40% from the 2024 reported figure.

ETR’s long-term (three to five years) earnings growth rate is 10.21%.

ETR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 14.30%.

ETR’s Capital Return Program

ETR has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 64 cents per share, resulting in an annualized dividend of $2.56. ETR’s current dividend yield is 2.74%, better than the Zacks S&P 500 composite's average of 1.12%.

ETR’s Capital Investment Focus

Entergy has a detailed and systematic capital investment plan of $41 billion for 2026-2029 that focuses on modernizing its infrastructure and transitioning to a more diverse, decarbonized and sustainable energy portfolio mix. 

Of this total investment, the $16 billion allocated for grid modernization — including transmission and distribution upgrades — should enhance ETR’s reliability and resilience as a utility provider and support renewable expansion and customer growth. The company further allocates $16 billion to generation projects, which aim at modernizing, decarbonizing and diversifying its power sources.

ETR’S Return on Equity

Return on Equity (ROE) indicates how efficiently a company is utilizing shareholders’ funds to generate returns. At present, ETR’s ROE is 11.53%, higher than the industry average of 9.95%.

ETR’s Solvency Ratio

Entergy’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 2.8. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.

ETR’s Share Price Performance

Over the past year, ETR’s shares have risen 24.2%, which beat the industry’s growth of 17.8%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks from the same industry are Edison International (EIX - Free Report) , Ameren Corporation (AEE - Free Report) and FirstEnergy Corp. (FE - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EIX’s long-term earnings growth rate is 10.93%. The Zacks Consensus Estimate for 2025 EPS is pegged at $6.10, which suggests year-over-year growth of 23.73%. 

AEE’s long-term earnings growth rate is 8.52%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.99, which suggests year-over-year growth of 7.78%.

FE’s long-term earnings growth rate is 6.46%. The Zacks Consensus Estimate for 2025 EPS is pegged at $2.54, which implies a year-over-year decline of 3.42%.

 

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