Entergy
ETR
$105.73
-1.34%
Entergy Corporation is a holding company that owns and operates five regulated, vertically integrated electric utilities serving over 3 million customers across Arkansas, Louisiana, Mississippi, and Texas, making it one of the largest power producers in the U.S. with 25 gigawatts of rate-regulated generation capacity. As a pure-play regulated electric utility (having divested its gas utilities and non-core assets), Entergy is distinct for its significant nuclear generation fleet and its strategic focus on the Gulf South region. The current investor narrative centers on the company's ability to capitalize on surging electricity demand from AI data centers, highlighted by a landmark $2 billion savings plan with Meta that funds grid expansion, while also managing the financial strain of heavy capital expenditure and a premium valuation relative to peers.…
ETR
Entergy
$105.73
Related headlines
Investment Opinion: Should I buy ETR Today?
We rate Entergy (ETR) as a Buy, driven by its accelerating revenue growth, strategic positioning in the AI data center boom, and attractive valuation relative to growth. The analyst consensus of Buy with an average target of $123.03 supports this view, implying a 14.7% upside from the current price of $107.27.
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ETR 12-Month Price Forecast
The AI assessment is bullish on ETR, driven by its strong revenue momentum and strategic positioning in the AI data center boom. The low PEG ratio and analyst support suggest upside potential, but the high debt levels and regulatory risks temper confidence to medium. If the company can maintain double-digit revenue growth and navigate regulatory hurdles, the stock is likely to re-rate higher. Key developments to watch include regulatory decisions on the Meta partnership and quarterly earnings reports for continued growth. A downgrade to neutral would occur if revenue growth falls below 5% or if regulatory setbacks emerge.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Entergy's 12-month outlook, with a consensus price target around $123.03 and implied upside of +16.4% versus the current price.
Average Target
$123.03
0 analysts
Implied Upside
+16.4%
vs. current price
Analyst Count
—
covering this stock
Price Range
$91 - $137
Analyst target range
The target price range spans from a low of $91.00 to a high of $137.00, representing a wide 50% spread between the low and high targets. The high target of $137 assumes successful execution of the Meta partnership and continued strong demand from data centers, which could drive earnings above consensus estimates. The low target of $91 suggests concerns about regulatory pushback, higher financing costs, or operational setbacks that could compress margins. Recent institutional actions show a positive trend, with upgrades from Evercore ISI (to Outperform) and Mizuho in June 2026, while most other firms maintain Overweight or Buy ratings, indicating a supportive analyst community.
Bulls vs Bears: ETR Investment Factors
Entergy presents a compelling growth story driven by AI data center demand and a strategic partnership with Meta, which has accelerated revenue growth to nearly 12% YoY. The stock's low beta and attractive PEG ratio appeal to investors seeking a defensive growth play. However, the premium valuation, high debt levels, and negative free cash flow introduce significant risks, particularly if regulatory hurdles or financing costs escalate. Currently, the bull case holds stronger evidence given the robust demand and analyst support, but the key tension lies in whether Entergy can execute its capital-intensive growth plan without eroding returns or facing regulatory setbacks. The outcome of this execution will determine if the stock reaches the high target of $137 or falls to the low of $91.
Bullish
- Strong Revenue Growth Acceleration: Q1 2026 revenue grew 11.97% YoY to $3.19B, up from 3.8% growth in Q4 2025, indicating accelerating demand across residential and industrial segments. This momentum is driven by robust economic expansion in the Gulf South region.
- Meta Partnership Unlocks Growth: The landmark $2 billion savings plan with Meta funds grid expansion and positions Entergy to capitalize on surging AI data center demand. This deal is a key catalyst for long-term earnings growth and was highlighted by a stock jump in March 2026.
- Attractive Valuation with PEG of 0.38: With a PEG ratio of 0.38, the stock is undervalued relative to its expected earnings growth. The forward PE of 21.0x is reasonable for a utility with accelerating growth and a 10% expected earnings increase.
- Analyst Consensus is Buy with 14.7% Upside: 20 analysts rate ETR a Buy with an average target of $123.03, implying 14.7% upside from the current price of $107.27. Recent upgrades from Evercore ISI and Mizuho reinforce positive sentiment.
Bearish
- Premium Valuation vs. Peers: ETR trades at 23.2x trailing PE and 6.0x EV/Sales, which is a premium to the typical regulated utility. The market is pricing in significant growth, leaving little room for disappointment.
- High Debt-to-Equity Ratio of 1.80: The company's debt-to-equity ratio of 1.80 indicates substantial leverage, which could strain cash flows if interest rates remain elevated. Rising financing costs could pressure margins and earnings.
- Negative Free Cash Flow: TTM free cash flow is -$3.0 billion, reflecting heavy capital expenditure for grid modernization and data center infrastructure. This cash burn may require additional debt or equity issuance, diluting shareholders.
- Regulatory and Execution Risks: The Meta deal and other growth initiatives depend on regulatory approvals. Any pushback from state regulators could delay projects and reduce the expected returns, as reflected in the analyst low target of $91.
ETR Technical Analysis
Entergy's stock has demonstrated a robust long-term uptrend, with a 1-year price change of +21.6%, significantly outperforming the S&P 500's +18.7% over the same period. The current price of $107.27 sits at approximately 73% of the 52-week range ($86.40–$118.45), indicating the stock is in the upper half of its range but has pulled back from its highs. This positioning suggests the market retains a constructive outlook, though the recent retreat from the peak may signal profit-taking or consolidation after a strong run.
Beta
0.48
0.48x market volatility
Max Drawdown
-11.3%
Largest decline past year
52-Week Range
$87-$118
Price range past year
Annual Return
+19.6%
Cumulative gain past year
| Period | ETR Return | S&P 500 |
|---|---|---|
| 1m | -0.8% | -1.6% |
| 3m | -4.8% | +2.2% |
| 6m | +0.1% | +14.4% |
| 1y | +19.6% | +16.2% |
| ytd | +12.6% | +11.1% |
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ETR Fundamental Analysis
Entergy's revenue trajectory is growing, with Q1 2026 revenue of $3.19 billion, up 11.97% year-over-year from $2.85 billion in Q1 2025. This growth is driven by robust demand across all customer classes, particularly residential ($1.15 billion) and industrial ($934 million) segments, reflecting the economic expansion in its service territory. The multi-quarter trend shows revenue increasing from $2.74 billion in Q4 2024 to $3.19 billion in Q1 2026, with the most recent quarter's growth rate of 11.97% representing an acceleration from the 3.8% growth seen in Q4 2025, indicating strengthening momentum.
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?
Given that Entergy is profitable (net income of $390.8 million in Q1 2026), the PE ratio is the most appropriate valuation metric. The trailing PE is 23.2x, while the forward PE is 21.0x, implying the market expects earnings growth of approximately 10% over the next year. This forward discount is modest, suggesting the market is pricing in steady, but not explosive, growth, which is typical for a regulated utility.
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
Financially, Entergy carries a high debt-to-equity ratio of 1.80, which amplifies interest expense—$379.7 million in Q1 2026 alone—and leaves the company vulnerable to rising interest rates. The negative free cash flow of -$3.0 billion TTM indicates that capital expenditures are outpacing operating cash flow, necessitating external financing that could dilute shareholders or increase leverage. Additionally, the payout ratio of 61.6% suggests limited retained earnings for organic growth, and any earnings shortfall could pressure the dividend. The company's reliance on continued revenue growth to justify its premium valuation is a key financial risk, as a slowdown could compress the multiple significantly.