Entergy
ETR
$114.87
+0.55%
Entergy Corporation is a holding company that operates five regulated vertically integrated electric utilities, serving approximately 3 million customers across Arkansas, Louisiana, Mississippi, and Texas. As one of the largest power producers in the U.S. with 27 GW of regulated generation capacity, it holds a dominant position in the Gulf South region. The current investor narrative centers on the company's landmark $2 billion savings plan with Meta, which funds grid expansion and positions Entergy for long-term growth, while also navigating the sale of its gas utilities in Louisiana and the ongoing transformation of its nuclear fleet.…
ETR
Entergy
$114.87
Related headlines
ETR 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Entergy's 12-month outlook, with a consensus price target around $122.83 and implied upside of +6.9% versus the current price.
Average Target
$122.83
0 analysts
Implied Upside
+6.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$91 - $138
Analyst target range
Entergy is covered by 21 analysts, with a consensus recommendation of 'Buy' (mean rating 1.71 on a 1-5 scale, where 1 is Strong Buy). The average target price is $122.83, implying approximately 7.5% upside from the current price of $114.24. The distribution leans bullish, with recent upgrades from Evercore ISI (to Outperform) and continued Overweight ratings from Barclays and JP Morgan. The target price range spans from $91.00 (low) to $138.00 (high). The high target of $138 assumes successful execution of the Meta deal and grid expansion, driving earnings growth and multiple expansion. The low target of $91 implies risks such as regulatory setbacks, higher interest rates, or cost overruns. The spread between low and high ($47) is moderate, reflecting reasonable uncertainty. Recent analyst actions show a mix of upgrades and reiterations, with no downgrades, indicating positive sentiment. The wide range suggests some divergence in views, but the overall consensus is bullish.
Bulls vs Bears: ETR Investment Factors
Entergy presents a mixed picture: strong revenue growth, a transformative Meta deal, and a low beta make it an attractive defensive growth utility. However, negative free cash flow, high debt, margin compression, and a premium valuation temper the bullish case. The bull case currently has stronger evidence due to the accelerating revenue growth and the Meta catalyst, but the bear case hinges on whether the company can manage its capital spending and debt load without diluting shareholders. The single most important tension is whether the Meta-driven grid expansion will generate sufficient returns to justify the premium valuation and improve free cash flow over the next 12-24 months.
Bullish
- Meta Deal Unlocks Growth: Entergy's landmark $2 billion savings plan with Meta funds grid expansion and positions the company for long-term growth, driving a 37.85% stock price increase over the past year.
- Accelerating Revenue Growth: Q1 2026 revenue grew 11.97% YoY to $3.188 billion, accelerating from 4.7% in Q2 2025, driven by rate base growth and increased commercial and industrial demand.
- Attractive PEG Ratio: With a PEG ratio of 0.38x, the stock appears undervalued relative to its earnings growth rate, suggesting potential for further upside.
- Strong Analyst Consensus: 21 analysts rate Entergy a Buy (mean 1.71/5), with an average target of $122.83, implying 7.5% upside from the current price of $114.24.
Bearish
- Negative Free Cash Flow: TTM free cash flow is -$3.00 billion, driven by heavy capital expenditures of $2.25 billion in Q1 2026 alone, requiring external financing and increasing financial risk.
- High Debt-to-Equity Ratio: Debt-to-equity of 1.80x is elevated, typical for utilities but still a concern given the negative free cash flow and rising interest expenses ($379.7 million in Q1 2026).
- Margin Compression: Operating margin declined from 24.59% in Q1 2025 to 17.95% in Q1 2026, and net margin slipped from 12.67% to 12.26%, indicating cost pressures.
- Premium Valuation: Trailing P/E of 23.22x and P/B of 2.38x are above industry averages (~18-20x and ~1.8x respectively), leaving limited margin of safety.
ETR Technical Analysis
Entergy is in a sustained uptrend, with the stock up 37.85% over the past year, significantly outperforming the S&P 500's 20.92% gain. The current price of $114.24 sits at 96.4% of its 52-week range ($82.38–$118.45), indicating the stock is near its highs and reflecting strong momentum. This positioning near the top of the range suggests bullish sentiment but also raises the risk of overextension. Short-term momentum shows mixed signals: the 1-month price change is +2.84%, while the 3-month change is -1.10%, indicating a deceleration from the longer-term trend. The 1-month relative strength versus the S&P 500 is +2.24%, but the 3-month relative strength is -7.39%, suggesting a recent loss of relative momentum. This divergence could signal a temporary pullback or consolidation within the broader uptrend. Key support lies at the 52-week low of $82.38, while resistance is at the 52-week high of $118.45. A breakout above $118.45 would signal a continuation of the uptrend, while a breakdown below $82.38 would be a bearish reversal. With a beta of 0.49, Entergy is significantly less volatile than the market, making it a defensive holding suitable for risk-averse investors.
Beta
0.49
0.49x market volatility
Max Drawdown
-11.0%
Largest decline past year
52-Week Range
$83-$118
Price range past year
Annual Return
+37.5%
Cumulative gain past year
| Period | ETR Return | S&P 500 |
|---|---|---|
| 1m | +2.2% | +0.1% |
| 3m | -0.6% | +5.7% |
| 6m | +19.1% | +8.5% |
| 1y | +37.5% | +20.3% |
| ytd | +22.4% | +10.1% |
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ETR Fundamental Analysis
Entergy's revenue trajectory is growing, with Q1 2026 revenue of $3.188 billion, up 11.97% year-over-year from $2.847 billion in Q1 2025. The multi-quarter trend shows revenue growth accelerating from 4.7% in Q2 2025 to 11.97% in Q1 2026, driven by rate base growth and increased demand from commercial and industrial customers. Revenue segments are led by Residential ($1.149B) and Industrial ($934M), with Commercial contributing $748M, indicating a diversified customer base. The company is profitable, with Q1 2026 net income of $390.8 million and a gross margin of 68.66%, which is strong for a regulated utility. However, gross margins have fluctuated, dropping to 22.53% in Q4 2025 due to seasonal factors, but rebounding in Q1 2026. Operating margin was 17.95% in Q1 2026, down from 24.59% in Q1 2025, suggesting some margin compression. The net margin of 12.26% is healthy, though slightly below the 12.67% in Q1 2025. Entergy's balance sheet shows a debt-to-equity ratio of 1.80, which is elevated but typical for capital-intensive utilities. Free cash flow (TTM) is negative at -$3.00 billion, driven by heavy capital expenditures of $2.25 billion in Q1 2026 alone, reflecting grid modernization and growth investments. The company relies on external financing, as evidenced by $3.24 billion in net cash from financing in Q1 2026. ROE is 10.34%, indicating decent returns on equity, but the negative free cash flow and high debt levels warrant monitoring.
Quarterly Revenue
$3.2B
2026-03
Revenue YoY Growth
+12.0%
YoY Comparison
Gross Margin
68.7%
Latest Quarter
Free Cash Flow
$-3.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ETR Overvalued?
Since net income is positive, the primary valuation metric is the P/E ratio. The trailing P/E is 23.22x, while the forward P/E is 22.54x, implying the market expects modest earnings growth. The gap between trailing and forward P/E is small, suggesting stable earnings expectations. Compared to the industry average P/E (not provided, but typically ~18-20x for regulated utilities), Entergy trades at a premium. The P/B ratio of 2.38x is above the industry average of ~1.8x, reflecting a premium for its regulated asset base and growth prospects. The EV/EBITDA of 11.68x is also above the typical utility range of 10-12x, indicating a slight premium. Historically, Entergy's trailing P/E has ranged from 5.4x (Q4 2023) to 120x (Q2 2024), with the current 23.22x near the middle of the range. The P/B ratio has ranged from 1.45x to 2.95x, with the current 2.38x above the median, suggesting the market is pricing in above-average growth expectations. The PEG ratio of 0.38x indicates the stock is undervalued relative to its growth rate, supporting a bullish case.
PE
23.2x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 5x~54x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
11.7x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: Entergy's negative free cash flow of -$3.00 billion TTM is a major concern, as heavy capex ($2.25 billion in Q1 2026) outpaces operating cash flow. The debt-to-equity ratio of 1.80x is elevated, and interest expenses rose to $379.7 million in Q1 2026, up from $329.8 million a year ago, squeezing net income. Margin compression, with operating margin falling from 24.59% to 17.95% YoY, indicates rising costs that could pressure earnings if not reversed. The reliance on external financing ($3.24 billion net cash from financing in Q1 2026) adds refinancing risk, especially if interest rates remain high.
Market & Competitive Risks: Entergy's premium valuation (trailing P/E 23.22x vs. industry ~18-20x) exposes it to multiple compression if growth disappoints. The stock's beta of 0.49 provides some insulation from market swings, but rising interest rates could make its dividend yield (2.67%) less attractive relative to bonds. Regulatory risk is inherent in its utility operations; any adverse rate case outcomes could limit returns. The Meta deal, while positive, creates concentration risk if the expected demand growth from data centers fails to materialize.
Worst-Case Scenario: A combination of regulatory setbacks, cost overruns on grid investments, and a prolonged high-interest-rate environment could trigger a sharp re-rating. In such a scenario, the stock could fall to the 52-week low of $82.38, representing a -27.9% decline from the current price of $114.24. This aligns with the analyst low target of $91, implying a -20.4% downside. Historical max drawdown of -10.97% suggests near-term pullbacks are possible, but a severe recession or regulatory crisis could amplify losses.