Here's Why ETR Stock Deserves a Spot in Your Portfolio Right Now

Entergy Corporation ETR focuses on building a more resilient and sustainable energy system. The company plans to invest $41 billion during 2026-2029. Given its strong growth and better future expansion plan, ETR makes for a solid investment option in the Zacks Utility-Electric Power industry.Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.ETR’s Growth Outlook & Surprise HistoryThe Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 0.26% to $3.90 in the past 60 days. The Zacks Consensus Estimate for 2025 revenues is pegged at $12.52 billion, which indicates growth of 5.40% from the 2024 reported figure.ETR’s long-term (three to five years) earnings growth rate is 10.21%.ETR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 14.30%.ETR’s Capital Return ProgramETR has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 64 cents per share, resulting in an annualized dividend of $2.56. ETR’s current dividend yield is 2.74%, better than the Zacks S&P 500 composite's average of 1.12%.ETR’s Capital Investment FocusEntergy has a detailed and systematic capital investment plan of $41 billion for 2026-2029 that focuses on modernizing its infrastructure and transitioning to a more diverse, decarbonized and sustainable energy portfolio mix. Of this total investment, the $16 billion allocated for grid modernization — including transmission and distribution upgrades — should enhance ETR’s reliability and resilience as a utility provider and support renewable expansion and customer growth. The company further allocates $16 billion to generation projects, which aim at modernizing, decarbonizing and diversifying its power sources.ETR’S Return on EquityReturn on Equity (ROE) indicates how efficiently a company is utilizing shareholders’ funds to generate returns. At present, ETR’s ROE is 11.53%, higher than the industry average of 9.95%.ETR’s Solvency RatioEntergy’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 2.8. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.ETR’s Share Price PerformanceOver the past year, ETR’s shares have risen 24.2%, which beat the industry’s growth of 17.8%. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Edison International EIX, Ameren Corporation AEE and FirstEnergy Corp. FE, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.EIX’s long-term earnings growth rate is 10.93%. The Zacks Consensus Estimate for 2025 EPS is pegged at $6.10, which suggests year-over-year growth of 23.73%. AEE’s long-term earnings growth rate is 8.52%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.99, which suggests year-over-year growth of 7.78%.FE’s long-term earnings growth rate is 6.46%. The Zacks Consensus Estimate for 2025 EPS is pegged at $2.54, which implies a year-over-year decline of 3.42%. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Edison International (EIX): Free Stock Analysis Report FirstEnergy Corporation (FE): 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