Valued at $31.8 billion by market cap New Orleans, Louisiana-based Entergy Corporation (ETR) engages in the production and retail distribution of electricity in the United States. The company’s power plants have approximately 24,000 megawatts of electric generating capacity.
Companies worth $10 billion or more are generally described as "large-cap stocks," Entergy fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the regulated electricity industry. It delivers electricity to over three million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
The stock recently touched its all-time high of $79.04 on Nov. 27 and is currently trading 5.4% below that peak. Entergy’s stock prices have surged 16.4% over the past three months, outpacing the Dow Jones Industrials Average’s ($DOWI) 5% gains during the same time frame.
Over the longer term, Entergy’s performance looks even more impressive. ETR soared 47.8% on a YTD basis and 48.2% over the past 52 weeks, outperforming DOWI’s 16% gains in 2024 and 17.2% returns over the past year.
To confirm the bullish trend, ETR has consistently traded above its 200-day moving average since mid-February and above its 50-day moving average since mid-July.
Entergy’s stock price surged 15.2% after the release of its better-than-expected Q3 earnings on Oct. 31. The company’s focus on its stakeholder engagement model which ensures value creation for customers and all other stakeholders, along with strong executions has enabled it to deliver resilient financial performance during a challenging quarter. The company’s adjusted EPS of $2.99 surpassed analysts’ consensus estimates by a notable margin, boosting investor confidence.
However, due to lower sales volumes and unfavorable weather conditions, Entergy’s total revenues declined 5.7% year-over-year to $3.4 billion. Due to higher depreciation and interest expenses, its net income to shareholders dipped 3.3% to $644.9 million. Following the initial surge, ETR stock prices dropped 6.5% in the subsequent trading session.
Entergy has substantially outpaced its peer DTE Energy Company’s (DTE) 10.1% gains in 2024 and 10.4% returns over the past year.
Among the 18 analysts covering the ETR stock, the consensus rating is a “Moderate Buy.” The mean price target of $76.04 suggests a modest 1.7% premium to current price levels.
