Entergy Corporation
ETR
$0.00
+1.16%
Entergy Corporation is a holding company operating five regulated, vertically integrated electric utilities serving customers in the U.S. South. It is a major power producer with significant rate-regulated generation capacity, positioning it as a stable, essential service provider in its regional markets.…
ETR
Entergy Corporation
$0.00
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Investment Opinion: Should I buy ETR Today?
Based on a synthesis of the technical, fundamental, and sentiment data, the objective assessment for ETR is a Hold. The stock's strong recent performance and positive catalysts are already reflected in its price, which trades near a 52-week high at a premium valuation (P/E 23). While the long-term growth narrative is strengthened by the Meta deal, current levels present an unfavorable risk/reward for new capital. Investors already holding the stock may consider maintaining their position to capture potential long-term benefits from grid investment.
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ETR 12-Month Price Forecast
The outlook is balanced. The Meta deal is a material positive, but the stock has run hard and faces headwinds from its balance sheet and valuation. The base case of consolidation appears most likely.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Entergy Corporation's 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
6 analysts
Implied Upside
—
vs. current price
Analyst Count
6
covering this stock
Price Range
$0 - $0
Analyst target range
Wall Street analyst sentiment appears broadly positive, based on recent institutional ratings. In 2026, firms including Barclays, Wells Fargo, Keybanc, BMO Capital, UBS, JP Morgan, and Argus Research have issued 'Buy', 'Overweight', or 'Outperform' ratings. Citigroup and Evercore ISI Group maintain 'Neutral' or 'In Line' stances. Specific consensus target price, price target ranges, and ratings distribution percentages are not provided in the data. The analyst data provided includes EPS and revenue estimates for six analysts, but does not contain explicit price targets.
Bulls vs Bears: ETR Investment Factors
Entergy presents a compelling but high-stakes investment case. Strong technical momentum, positive analyst sentiment, and a major growth deal with Meta are powerful bullish drivers. However, these are counterbalanced by significant financial leverage, cash flow challenges, and a premium valuation that may limit near-term upside.
Bullish
- Strong Technical Momentum: Stock up 20% in 6 months, near 52-week high, showing significant relative strength.
- Positive Analyst Sentiment: Multiple major firms (Barclays, Wells Fargo, JP Morgan) have issued Buy/Outperform ratings.
- Major Growth Catalyst: $2B deal with Meta promises customer savings and funds grid expansion.
- Stable, Regulated Business: Essential utility in the U.S. South provides predictable revenue stream.
Bearish
- High Debt and Poor Liquidity: Debt-to-equity of 1.8 and a current ratio of 0.73 indicate financial strain.
- Negative Free Cash Flow: TTM FCF is -$2.75B due to heavy capital expenditures.
- Premium Valuation: P/E ratios above 22x and P/B of 2.38 are high for a utility.
- Earnings Volatility: Net margin dropped from 18.3% in Q3 to 8.1% in Q4 2025.
ETR Technical Analysis
The stock has demonstrated strong positive momentum over the past six months, rising from approximately $93.57 in early October 2025 to $112.36 by March 31, 2026, representing a gain of over 20%. This uptrend has been particularly pronounced in the last three months, with a 21.56% increase, significantly outperforming the broader market (SPY down 4.63% over the same period). Short-term performance has been volatile but positive, with a 4.90% gain over the past month. The price action shows a sharp rally in late February and a significant jump in late March, suggesting strong buying interest. The stock has shown remarkable relative strength, with a 1-month relative strength of 10.15 against the market. The current price of $112.36 is near the top of its 52-week range of $75.57 to $112.53, trading just $0.17 below the yearly high. This indicates the stock is in a technically strong position, having recovered from lower levels seen in late 2025 and early 2026 to challenge its annual peak.
Beta
0.56
0.56x market volatility
Max Drawdown
-10.1%
Largest decline past year
52-Week Range
$76-$115
Price range past year
Annual Return
+32.7%
Cumulative gain past year
| Period | ETR Return | S&P 500 |
|---|---|---|
| 1m | +8.6% | -4.3% |
| 3m | +22.4% | -4.0% |
| 6m | +20.5% | -2.0% |
| 1y | +32.7% | +22.2% |
| ytd | +22.4% | -3.8% |
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ETR Fundamental Analysis
Revenue growth has been positive, with Q4 2025 revenue of $2.96 billion representing a 7.9% year-over-year increase. However, profitability has been inconsistent; the Q4 2025 net margin was 8.1%, a decline from the 18.3% net margin reported in Q3 2025, indicating quarterly volatility in earnings. The trailing twelve-month net margin is reported at 13.7%. Financial health shows a high debt-to-equity ratio of 1.80, which is typical for capital-intensive utilities but indicates significant leverage. The current ratio is 0.73, suggesting potential liquidity constraints in covering short-term obligations. Notably, the trailing twelve-month free cash flow is negative at -$2.75 billion, primarily due to substantial capital expenditures. Operational efficiency metrics show a Return on Equity (ROE) of 10.34% and a Return on Assets (ROA) of 2.99%. The asset turnover ratio from the latest quarterly data is low at 0.041, which is characteristic of utilities with large fixed asset bases requiring significant investment.
Quarterly Revenue
$3.0B
2025-12
Revenue YoY Growth
+0.07%
YoY Comparison
Gross Margin
+0.22%
Latest Quarter
Free Cash Flow
$-2.7B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ETR Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. Entergy's trailing P/E ratio is 23.04, while its forward P/E is 22.76, based on estimated future earnings. This suggests the market is pricing in stable, modest earnings growth. Peer comparison data for industry averages is not available in the provided inputs. Other valuation metrics include a Price-to-Sales (P/S) ratio of 3.16, an EV/EBITDA of 11.68, and a Price-to-Book (P/B) ratio of 2.38. The PEG ratio is 0.38, which, if accurate, could indicate the stock is undervalued relative to its earnings growth rate.
PE
23.0x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -3590x~109x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
11.7x
Enterprise Value Multiple
Investment Risk Disclosure
Entergy's risk profile is elevated for a regulated utility. Financial risk is high due to significant leverage (D/E of 1.8) and weak short-term liquidity (Current Ratio of 0.73). The substantial negative free cash flow (-$2.75B TTM) underscores the capital-intensive nature of the business and reliance on external financing for its grid expansion plans. Operational risk is present in the form of quarterly earnings volatility, as seen in the sharp drop in net margin from Q3 to Q4 2025. Market risk is notable given the stock's extended valuation (P/E > 22) and its proximity to a 52-week high after a 20% rally, increasing vulnerability to a pullback. However, the regulated business model and essential service provision mitigate some downside, and the landmark Meta partnership provides a tangible growth catalyst that could de-risk the long-term investment thesis if successfully executed.