ETR Stock Analysis — Entergy Corporation
Sector: Utilities
AI Verdict
Entergy trades at 25.3x next year's earnings—expensive for a utility—so you're paying up for stable, regulated growth, but the monopoly moat means the 12% EPS growth expectation is more credible than most.
Competitive Moat
Entergy operates regulated electric utilities with geographic monopolies across the Gulf South, protected by state-level rate structures that guarantee a return on investment. The high capital requirements and regulatory barriers make it difficult for new entrants to challenge their position.
Summary
Entergy's regulated utility model has delivered a 33.57% one-year return, outpacing most peers in the sector.
Where It Stands
ETR is up 33.57% over the past year, trades at 25.3x forward earnings versus a utility sector median of 18x, and its RSI of 44.5 signals cooling momentum after the rally.
Key Metrics
- RSI: 44.5 — Neutral
- Trailing P/E: 28.4x
- Forward P/E: 25.3x
- PEG Ratio: 2.24
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $51.0B
- Dividend Yield: 0.02%
- 1-Year Return: 33.57%
- 52-Week High: $118.44
- 52-Week Low: $79.40
Analyst Consensus
16 Buy · 8 Hold · 0 Sell (24 analysts)
Bull Case
Forward EPS is expected to grow 12.0%, which is robust for a utility, supporting a premium valuation if regulatory stability holds.
Bear Case
With a 25.3x forward P/E versus an 18x sector median, a reversion to typical utility multiples would mean a 29% valuation drop even if earnings meet expectations.
Catalyst to Watch
State regulatory decisions on allowed returns or rate hikes could either reinforce or undermine the earnings growth outlook.