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ETR to Gain From Strategic Nuclear Expansion & Renewable Transition
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Key Takeaways
ETR invests in grid hardening, transmission and nuclear assets to support renewables.
ETR has outlined a $41B capital plan for 2026-2029, with $16B for transmission and distribution.
ETR partners with NextEra to build up to 4.5 GW of solar and storage, targeting 5,000 MW by 2028.
Entergy Corporation (ETR - Free Report) has been focusing on strategic investments in infrastructure and grid hardening to enhance the resilience of its transmission and distribution systems while supporting renewable energy expansion.
The company’s long-term (three to five years) earnings growth rate is projected at 10.21%.
Tailwinds
Favourable government policies aim to expand the America’s nuclear energy capacity from nearly 100 gigawatts (GW) in 2024 to 400 gigawatts (GW) by 2050. Pro-nuclear policies should favor Entergy, which operates five reactors across four Southern U.S. sites and generates 27% of its power from nuclear energy.
The company also received an early site permit for a new reactor at its Grand Gulf site in Port Gibson, MS. These strategic investments with supportive government policies should strengthen the company’s position in the nuclear energy sector.
Entergy (ETR - Free Report) has outlined a long-term capital investment plan of $41 billion for 2026-2029, primarily focused on upgrading its distribution, generation, and transmission assets to support renewable expansion. Of this amount, nearly $16 billion is allocated to transmission and distribution networks to improve reliability and resilience, while also supporting renewable integration and customer growth. In addition, the company plans to invest approximately $16 billion in generation projects to modernize, decarbonize, expand and diversify its portfolio.
The company is transitioning toward renewable energy as a primary energy source, driven by strong clean energy demand from residential customers, AI data centers and other industries. To accelerate this growth, the company has partnered with NextEra Energy Resources to develop up to 4.5 gigawatts (GW) of new solar and storage projects. Together, these initiatives are designed to achieve the company's target of adding over 5,000 MW of solar power by the end of 2028 and having 14-17 gigawatts (GW) of renewable energy in service by the end of 2031.
Headwinds
Entergy’s nuclear operations rely on the continued availability of nuclear fuel under existing contracts and inventory at relatively stable prices through 2027; however, this stability is not guaranteed. The company remains exposed to uranium miners and broader market conditions, and any shift to alternative uranium suppliers could increase procurement costs and disrupt operations.
Fuel price volatility has increased due to high tariffs, domestic purchasing requirements, supply-chain disruptions, import restrictions and geopolitical tensions. While the company’s contracts provide some protection, long-term fuel costs remain uncertain. Any significant price increases or supply disruptions could adversely impact the company’s financial health, liquidity and operations, creating additional risks for investors.
Price Performance
Over the past six months, ETR shares have risen 12.3%, which beat the industry’s growth of 8.4%.
Image: Bigstock
ETR to Gain From Strategic Nuclear Expansion & Renewable Transition
Key Takeaways
Entergy Corporation (ETR - Free Report) has been focusing on strategic investments in infrastructure and grid hardening to enhance the resilience of its transmission and distribution systems while supporting renewable energy expansion.
The company’s long-term (three to five years) earnings growth rate is projected at 10.21%.
Tailwinds
Favourable government policies aim to expand the America’s nuclear energy capacity from nearly 100 gigawatts (GW) in 2024 to 400 gigawatts (GW) by 2050. Pro-nuclear policies should favor Entergy, which operates five reactors across four Southern U.S. sites and generates 27% of its power from nuclear energy.
The company also received an early site permit for a new reactor at its Grand Gulf site in Port Gibson, MS. These strategic investments with supportive government policies should strengthen the company’s position in the nuclear energy sector.
Entergy (ETR - Free Report) has outlined a long-term capital investment plan of $41 billion for 2026-2029, primarily focused on upgrading its distribution, generation, and transmission assets to support renewable expansion. Of this amount, nearly $16 billion is allocated to transmission and distribution networks to improve reliability and resilience, while also supporting renewable integration and customer growth. In addition, the company plans to invest approximately $16 billion in generation projects to modernize, decarbonize, expand and diversify its portfolio.
The company is transitioning toward renewable energy as a primary energy source, driven by strong clean energy demand from residential customers, AI data centers and other industries. To accelerate this growth, the company has partnered with NextEra Energy Resources to develop up to 4.5 gigawatts (GW) of new solar and storage projects. Together, these initiatives are designed to achieve the company's target of adding over 5,000 MW of solar power by the end of 2028 and having 14-17 gigawatts (GW) of renewable energy in service by the end of 2031.
Headwinds
Entergy’s nuclear operations rely on the continued availability of nuclear fuel under existing contracts and inventory at relatively stable prices through 2027; however, this stability is not guaranteed. The company remains exposed to uranium miners and broader market conditions, and any shift to alternative uranium suppliers could increase procurement costs and disrupt operations.
Fuel price volatility has increased due to high tariffs, domestic purchasing requirements, supply-chain disruptions, import restrictions and geopolitical tensions. While the company’s contracts provide some protection, long-term fuel costs remain uncertain. Any significant price increases or supply disruptions could adversely impact the company’s financial health, liquidity and operations, creating additional risks for investors.
Price Performance
Over the past six months, ETR shares have risen 12.3%, which beat the industry’s growth of 8.4%.
Zacks Rank & Stocks to Consider
ETR currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are Ameren Corporation (AEE - Free Report) , OGE Energy Corp. (OGE - Free Report) and PG&E Corporation (PCG - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AEE, OGE and PCG delivered an average earnings surprise of 0.22%, 10.45%, and 0.47%, respectively, over the last four quarters.
The Zacks Consensus Estimate for AEE, OGE and PCG’s 2025 EPS indicates year-over-year growth of 8.21%, 4.11% and 10.29%, respectively.