Zacks Investment Research·3d ago
Are You Looking for a Top Momentum Pick? Why Entergy (ETR) is a Great ChoiceDoes Entergy (ETR) have what it takes to be a top stock pick for momentum investors? Let's find out.
Entergy's rate base expanded roughly 31 percent from $45.6B to $59.7B in net PP&E over the ten-quarter window, while capital spending of $2.2B to $2.8B in recent quarters ran at 121% to 181% of operating cash flow, suggesting the regulated build-out is financed heavily through external capital.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue rose 14.5% year over year to $4.4B in 2026Q3 with operating margins swinging between 16.2% and 33.9%, suggesting earnings are sensitive to discrete regulatory or non-recurring items rather than steady authorized-return compounding.
Entergy’s expanded $40 billion capital plan for 2025‑2028 focuses on grid modernization, storm resilience, and green energy investments. The plan is expected to lift industrial sales, which already show a 13% CAGR, and the company has raised its growth guidance to greater than 8% through 2028.
The Fair Share Plus framework has data center clients fund their own power needs and contribute to grid upgrades, relieving infrastructure costs for households. This model supports large‑scale renewable and resilience investments, potentially delivering significant customer savings over time.
Entergy reported Q2 2025 revenues up 12.7% year‑over‑year and net income surging 856.9% year‑over‑year. The company’s net margin is approximately 13.66%, indicating effective cost management.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 2, 2026 | $1.98+14.5% vs $1.73 | $4.4B+6.0% vs $4.1B |
Q3 2026 Jul 29, 2026 | $1.03+2.0% vs $1.01 | $3.5B+0.9% vs $3.5B |
Q2 2026 Apr 29, 2026 | $0.86+2.4% vs $0.84 | $3.2B+10.3% vs $2.9B |
Q1 2026 Feb 12, 2026 | $0.51-2.3% vs $0.52 | $3.0B+6.5% vs $2.8B |
Does Entergy (ETR) have what it takes to be a top stock pick for momentum investors? Let's find out.
I rated Entergy a Buy at ~$105 in February. Its 2027 EPS outlook has since risen, but I was wrong about dilution: equity needs to grow to $7B. Q3 EPS beat by $0.28, with hot weather adding $0.24. Narrowed guidance implies a roughly flat Q4, so the full year barely changed. Louisiana regulators vote in December on $15.1B+ of plants, transmission, and batteries for Meta's Hyperion expansion, ~16% of Entergy's projected 2030 rate base.
I monitor dividend increases and cuts across 1,200+ stocks, focusing on dividend growth streaks, safety, and valuation to identify conviction opportunities. V, APH, and HIG stand out for robust dividend hikes, high-quality scores, and strong safety metrics. Energy names XOM and MPLX offer high yields and long growth streaks, but MPLX and SCL raise coverage and safety concerns because of their high payout ratios.
Visa, Entergy, Tennant, and Fortis all just lifted their quarterly payouts, but a dividend raise is only as good as the cash flow standing behind it.
Benchmark ETR against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Entergy Corporation (ETR)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $110.55 | $51.59B | 25.40 | 8.98% | 14.71% | 11.26% | 2.16% | |
| $92.34 | $104.09B | 21.46 | 10.59% | 16% | 12.03% | 2.94% | |
| $127.78 | $99.62B | 18.49 | 6.19% | 15.94% | 9.63% | 3.32% | |
| $68.60 | $60.34B | 22.35 | 14.16% | 13.94% | 8.01% | 3.88% | |
| $126.53 | $68.85B | 20.74 | 9.37% | 14.38% | 10.12% | 3.05% | |
| $35.80 | $26.94B | 20.56 | 6.85% | 13.62% | 8.74% | 2.98% |
Entergy Corporation (ETR) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Entergy Corporation (ETR) SEC filings — annual & quarterly reports (10-K, 10-Q)
Nov 2, 2026·SEC
Jul 29, 2026·SEC
Jun 23, 2026·SEC
Feb 19, 2026·SEC
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Entergy Corporation (ETR) stock FAQ — growth, dividends, profitability & financials explained
Entergy Corporation (ETR) reported $14.04B in revenue over the trailing twelve months. Revenue was $12.95B in fiscal year 2025. That is 81% more than the $7.16B of fiscal year 1996.
Entergy Corporation (ETR) grew revenue by 10.3% over the trailing twelve months, compared with the twelve months before.
Yes. Entergy Corporation (ETR) earned $2.06B in net income over the trailing twelve months (a 14.7% net margin).
Yes. Entergy Corporation (ETR) pays a dividend that yields 2.16% at the current price, a moderate yield.
Entergy Corporation (ETR) had a return on equity (ROE) of 11.3% over the trailing twelve months. That is in line with the market's typical 10-15%.
Entergy Corporation (ETR) had negative free cash flow of $3.83B over the trailing twelve months.
Entergy Corporation (ETR) has a dividend payout ratio of 61%. This suggests the dividend is well-covered and sustainable.
