ETR to Gain From Strategic Nuclear Expansion & Renewable Transition

Entergy Corporation ETR has been focusing on strategic investments in infrastructure and grid hardening to enhance the resilience of its transmission and distribution systems while supporting renewable energy expansion.The company’s long-term (three to five years) earnings growth rate is projected at 10.21%.TailwindsFavourable government policies aim to expand the America’s nuclear energy capacity from nearly 100 gigawatts (GW) in 2024 to 400 gigawatts (GW) by 2050. Pro-nuclear policies should favor Entergy, which operates five reactors across four Southern U.S. sites and generates 27% of its power from nuclear energy.The company also received an early site permit for a new reactor at its Grand Gulf site in Port Gibson, MS. These strategic investments with supportive government policies should strengthen the company’s position in the nuclear energy sector.Entergy (ETR) has outlined a long-term capital investment plan of $41 billion for 2026-2029, primarily focused on upgrading its distribution, generation, and transmission assets to support renewable expansion. Of this amount, nearly $16 billion is allocated to transmission and distribution networks to improve reliability and resilience, while also supporting renewable integration and customer growth. In addition, the company plans to invest approximately $16 billion in generation projects to modernize, decarbonize, expand and diversify its portfolio.The company is transitioning toward renewable energy as a primary energy source, driven by strong clean energy demand from residential customers, AI data centers and other industries. To accelerate this growth, the company has partnered with NextEra Energy Resources to develop up to 4.5 gigawatts (GW) of new solar and storage projects. Together, these initiatives are designed to achieve the company's target of adding over 5,000 MW of solar power by the end of 2028 and having 14-17 gigawatts (GW) of renewable energy in service by the end of 2031.HeadwindsEntergy’s nuclear operations rely on the continued availability of nuclear fuel under existing contracts and inventory at relatively stable prices through 2027; however, this stability is not guaranteed. The company remains exposed to uranium miners and broader market conditions, and any shift to alternative uranium suppliers could increase procurement costs and disrupt operations.Fuel price volatility has increased due to high tariffs, domestic purchasing requirements, supply-chain disruptions, import restrictions and geopolitical tensions. While the company’s contracts provide some protection, long-term fuel costs remain uncertain. Any significant price increases or supply disruptions could adversely impact the company’s financial health, liquidity and operations, creating additional risks for investors.Price PerformanceOver the past six months, ETR shares have risen 12.3%, which beat the industry’s growth of 8.4%.Zacks Rank & Stocks to ConsiderETR currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are Ameren Corporation AEE, OGE Energy Corp. OGE and PG&E Corporation PCG, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.AEE, OGE and PCG delivered an average earnings surprise of 0.22%, 10.45%, and 0.47%, respectively, over the last four quarters.The Zacks Consensus Estimate for AEE, OGE and PCG’s 2025 EPS indicates year-over-year growth of 8.21%, 4.11% and 10.29%, respectively. Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ameren Corporation (AEE): Free Stock Analysis Report Entergy Corporation (ETR): Free Stock Analysis Report Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report OGE Energy Corporation (OGE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks