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Here Is Why You Should Add Entergy to Your Portfolio Right Now
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Key Takeaways
ETR plans $43B investment through 2029 to boost grid modernization, renewables, and new generation.
Entergy projects steady earnings growth, with estimates rising and a long-term rate at 11.50%.
ETR beat earnings in 3 of the last 4 quarters, delivering an average positive surprise of 13.11%.
Entergy Corporation (ETR - Free Report) benefits from strategic capital investment in infrastructure development to expand its renewable assets and upgrade existing nuclear plants. Systematic investments in infrastructure enhance capacity, improve efficiency, ensure cleaner energy production and boost long-term growth.
The Zacks Consensus Estimate for ETR’s 2026 and 2027 earnings has moved up 0.23% and 0.41%, respectively, in the past 60 days. The Zacks Consensus Estimate for ETR’s 2026 and 2027 sales is pinned at $13.78 billion and $15 billion, indicating year-over-year growth of 6.4% and 8.91%, respectively.
ETR’s long-term (three to five years) earnings growth rate is 11.50%.
ETR has surpassed earnings estimates in three of the trailing four quarters and reported on-par earnings in one quarter, resulting in an average positive earnings surprise 13.11%.
ETR’s Stable Investments
Entergy aims to strategically invest in grid modernization, decarbonize, diversify its portfolio and potentially construct additional generation assets. ETR plans to invest $43 billion during the 2026-2029-time frame. This four-year capital plan includes $17 billion for grid modernization, renewables expansion, customer growth, and $15 billion for new generation projects to diversify Entergy’s portfolio.
ETR’s Dividend History
Entergy has a dividend yield of 2.25% versus the Zacks S&P 500 composite’s average of 1.47%. The company’s current quarterly dividend rate is 64 cents, resulting in an annualized dividend of $2.56 per share.
ETR’s Return on Equity
Return on Equity (“ROE”) measures how efficiently a company is utilizing shareholders’ funds to generate returns, reflecting management efficiency and overall financial performance. At present, ETR’s ROE is 10.89%, higher than the industry average of 10.82%, indicating that the company is utilizing its funds more effectively than its industry peers.
ETR’s Solvency
ETR’s time earned ratio (TIE) at the end of the fourth quarter of 2025 was 2.6. The TIE ratio measures a company’s ability to meet long-term debt obligations, indicating how effectively operating earnings cover interest expenses and reflecting its overall financial stability and solvency.
Price Performance of ETR
In the past three months, Entergy shares have rallied 23.6% compared with the industry’s 10.3% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same industry are CenterPoint Energy (CNP - Free Report) , IDACORP (IDA - Free Report) and NiSource Inc. (NI - Free Report) , each carrying a Zacks Rank #2.
CNP, IDA and NI’s dividend yields are 2.13%, 2.45% and 2.56%, respectively.
The Zacks Consensus Estimate for CenterPoint Energy, IDACORP and NiSource 2026 EPS is pegged at $1.91, $6.42 and $2.05, suggesting year-over-year growth of 8.52%, 8.81% and 7.89%, respectively.
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Here Is Why You Should Add Entergy to Your Portfolio Right Now
Key Takeaways
Entergy Corporation (ETR - Free Report) benefits from strategic capital investment in infrastructure development to expand its renewable assets and upgrade existing nuclear plants. Systematic investments in infrastructure enhance capacity, improve efficiency, ensure cleaner energy production and boost long-term growth.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ETR’s Growth Projection & Surprise History
The Zacks Consensus Estimate for ETR’s 2026 and 2027 earnings has moved up 0.23% and 0.41%, respectively, in the past 60 days. The Zacks Consensus Estimate for ETR’s 2026 and 2027 sales is pinned at $13.78 billion and $15 billion, indicating year-over-year growth of 6.4% and 8.91%, respectively.
ETR’s long-term (three to five years) earnings growth rate is 11.50%.
ETR has surpassed earnings estimates in three of the trailing four quarters and reported on-par earnings in one quarter, resulting in an average positive earnings surprise 13.11%.
ETR’s Stable Investments
Entergy aims to strategically invest in grid modernization, decarbonize, diversify its portfolio and potentially construct additional generation assets. ETR plans to invest $43 billion during the 2026-2029-time frame. This four-year capital plan includes $17 billion for grid modernization, renewables expansion, customer growth, and $15 billion for new generation projects to diversify Entergy’s portfolio.
ETR’s Dividend History
Entergy has a dividend yield of 2.25% versus the Zacks S&P 500 composite’s average of 1.47%. The company’s current quarterly dividend rate is 64 cents, resulting in an annualized dividend of $2.56 per share.
ETR’s Return on Equity
Return on Equity (“ROE”) measures how efficiently a company is utilizing shareholders’ funds to generate returns, reflecting management efficiency and overall financial performance. At present, ETR’s ROE is 10.89%, higher than the industry average of 10.82%, indicating that the company is utilizing its funds more effectively than its industry peers.
ETR’s Solvency
ETR’s time earned ratio (TIE) at the end of the fourth quarter of 2025 was 2.6. The TIE ratio measures a company’s ability to meet long-term debt obligations, indicating how effectively operating earnings cover interest expenses and reflecting its overall financial stability and solvency.
Price Performance of ETR
In the past three months, Entergy shares have rallied 23.6% compared with the industry’s 10.3% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same industry are CenterPoint Energy (CNP - Free Report) , IDACORP (IDA - Free Report) and NiSource Inc. (NI - Free Report) , each carrying a Zacks Rank #2.
CNP, IDA and NI’s dividend yields are 2.13%, 2.45% and 2.56%, respectively.
The Zacks Consensus Estimate for CenterPoint Energy, IDACORP and NiSource 2026 EPS is pegged at $1.91, $6.42 and $2.05, suggesting year-over-year growth of 8.52%, 8.81% and 7.89%, respectively.