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Here's Why You Should Add Entergy (ETR) to Your Portfolio
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Estimates for Entergy Corporation (ETR - Free Report) have been revised upward in the past 90 days, which reflects analysts’ optimism in the stock. The Zacks Consensus Estimate for 2019 earnings has inched up 0.4%.
Shares of Entergy have rallied 5.4% in the past 12 months, outperforming the industry’s gain of 1.2%.
Let’s focus on the factors that make Entergy an attractive pick.
Entergy pulled off an average positive earnings surprise of 36.20% in the last four quarters.
Growth Projections
The Zacks Consensus Estimate for 2019 earnings per share is pegged at $5.66. Its long-term earnings growth rate is at 7%. The Zacks Consensus Estimate for 2019 revenues is pegged at $11.12 billion up 3.16% year over year.
VGM Score
Entergy has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are best investment options.
Disciplined Investment & Stable Cash flow
Investments in growth projects are expected to drive growth. The company stated that it plans to invest $11.22 billion in the 2018–2020 time frame. The amount includes $4.25 billion for generation, $2.84 billion for distribution and $2.59 billion for transmission. Moreover, Entergy maintains a stable liquidity position backed by a strong cash generation capacity that enables it to make notable investment plans. As of Sep 30, 2018, the company had cash and cash equivalents of $988 million.
Dividend Yield
Entergy is paying dividend since 1972 and is constantly rewarding shareholders through steady dividend hike. Currently, dividend yield of the company is at 4.29%, higher than the industry's 3.23% and Zacks S&P 500’s 2.12%.
Stocks to Consider
A few other top-ranked stocks from the same industry are Ameren Corporation (AEE - Free Report) , Dominion Energy Inc (D - Free Report) and Xcel Energy Inc (XEL - Free Report) . Ameren sports a Zacks Rank #1, while Dominion and Xcel Energy hold a Zacks Rank #2.
Long-term earnings growth of Ameren, Dominion and FirstEnergy is pegged at 6.80%, 6.60% and 5.90%, respectively.
The Zacks Consensus Estimate for 2019 earnings of Ameren, Dominion and FirstEnergy inched up 0.3%, 0.5% and 0.8% in the past 90 days, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Here's Why You Should Add Entergy (ETR) to Your Portfolio
Estimates for Entergy Corporation (ETR - Free Report) have been revised upward in the past 90 days, which reflects analysts’ optimism in the stock. The Zacks Consensus Estimate for 2019 earnings has inched up 0.4%.
Shares of Entergy have rallied 5.4% in the past 12 months, outperforming the industry’s gain of 1.2%.
Let’s focus on the factors that make Entergy an attractive pick.
Zacks Rank & Surprise History
The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Entergy pulled off an average positive earnings surprise of 36.20% in the last four quarters.
Growth Projections
The Zacks Consensus Estimate for 2019 earnings per share is pegged at $5.66. Its long-term earnings growth rate is at 7%. The Zacks Consensus Estimate for 2019 revenues is pegged at $11.12 billion up 3.16% year over year.
VGM Score
Entergy has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are best investment options.
Disciplined Investment & Stable Cash flow
Investments in growth projects are expected to drive growth. The company stated that it plans to invest $11.22 billion in the 2018–2020 time frame. The amount includes $4.25 billion for generation, $2.84 billion for distribution and $2.59 billion for transmission. Moreover, Entergy maintains a stable liquidity position backed by a strong cash generation capacity that enables it to make notable investment plans. As of Sep 30, 2018, the company had cash and cash equivalents of $988 million.
Dividend Yield
Entergy is paying dividend since 1972 and is constantly rewarding shareholders through steady dividend hike. Currently, dividend yield of the company is at 4.29%, higher than the industry's 3.23% and Zacks S&P 500’s 2.12%.
Stocks to Consider
A few other top-ranked stocks from the same industry are Ameren Corporation (AEE - Free Report) , Dominion Energy Inc (D - Free Report) and Xcel Energy Inc (XEL - Free Report) . Ameren sports a Zacks Rank #1, while Dominion and Xcel Energy hold a Zacks Rank #2.
Long-term earnings growth of Ameren, Dominion and FirstEnergy is pegged at 6.80%, 6.60% and 5.90%, respectively.
The Zacks Consensus Estimate for 2019 earnings of Ameren, Dominion and FirstEnergy inched up 0.3%, 0.5% and 0.8% in the past 90 days, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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