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Stocks
Entergy Corporation
EL7 Factor Analysis
How we score this
Overall36
Weak — below market medianMomentum TrapF 6/9Better than 36% of Market stocks, per EL7's model
FactorScoreDistributionValueAvgRank
▸
Valuation
41
26.8x▼17.8xAround median
▸
Growth
40
9.5%▲7.1%Around median
▸
Quality
35
5.1%▲4.5%Bottom tier
▸
Safety
27
6.3x▼2.6xBottom tier
▸
Capital Return
25
2.32%▲2.12%Bottom tier
▸
Momentum
68
22.5%▲2.9%Top tier
▸
Sentiment
84
14▲3Top tier
ETR

ETR Entergy Corporation

Entergy Corporation · NYSE
Market Closed
105.33
▼ ⁦-0.38%⁩ (-0.40)
Market Cap$49.2B
Beta0.49
52w Low52w High
87.38118.45
Last Week
⁦-2.27%⁩
Last Month
⁦-2.34%⁩
Last 3 Months
⁦-4.15%⁩
Last Year
⁦+19.10%⁩
Fair Value
Current price$105
Analyst target · 13 analysts
$123
⁦+17%⁩
See it undervalued
Range ⁦$105–$135⁩
vs
DCF (estimate)
$32
⁦-70%⁩
Sees it clearly overvalued
⁦7.9⁩% discount · ⁦2⁩% growth
Bottom lineThe two methods disagree — estimate range ⁦$32–$123⁩.

Estimates — analyst targets and a simplified DCF, not investment advice.

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Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 13 analysts setting price target
$123.91
⁦+17.6%⁩
Current Price $105.33·Median $123.00
Low
$105.00
High
$135.00
Current price
$105.33
Average target
$123.91
Street summary

Consensus Stability Amid a Broader Analyst Base

The consensus price target remained stable at 123.91 over the past day and past 7 days, while declining by approximately $0.36, or 0.29%, compared with the August 11 snapshot. Meanwhile, the number of analysts included increased from 6 to 13, making the current reading broader, but the target range between $105 and $135 reflects notable variation in estimates compared with the current price of $105.73.

As of 2026-09-10
Revisions momentum · 30d
⁦-0.3%⁩
Average rating
★ 3.83
Buy
Analyst coverage
23
Buy conviction
74%
High
Rating activity · 30d
0↑ · 0↓
Target dispersion
28%
Analyst ratings over time23 analysts rating
4
13
5
1
Strong BuyBuyHoldSellStrong Sell
Rating trend — last 12 months3.86 → 3.83
Recent analyst moves
  • = Reiterate2026-08-17
    Evercore ISI Group
    Outperform
  • = Reiterate2026-06-10
    Jefferies
    Buy
  • ⬆ Upgrade2026-06-10
    Evercore ISI Group
    Outperform
Premium content
Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range
MetricValuePosition within sectorVerdict
  • P/E (TTM)
    26.80x
    4.50x36.01x
    Expensive
  • Forward P/E
    21.55x
    4.35x34.77x
    Near median
  • EV / EBITDA
    15.27x
    3.07x24.54x
    Above average
  • FCF Yield
    5.4%
    -17.6%10.2%
    Strong
  • Revenue Growth YoY
    9.5%
    -10.5%25.3%
    Above average
  • EPS Growth YoY
    -2.7%
    -53.8%122.0%
    Below average
  • Gross Margin
    30.4%
    9.8%69.4%
    Near median
  • ROIC
    5.1%
    -2.0%11.4%
    Above average
  • Net Debt / EBITDA
    6.33x
    1.28x10.25x
    Above average
  • Dividend Yield
    2.3%
    1.4%6.1%
    Low
  • Payout Ratio
    62.1%
    35.0%95.0%
    Moderate
  • Altman Z-Score
    —
    —
Financial Analysis
|

Stock Analysis

AI-generated
Based on 2026-07-29 data

Company Overview

Entergy Corporation is an electric utility serving customers across the southern Gulf corridor in Louisiana, Mississippi, Arkansas, Texas, and New Orleans, generating returns from electricity sales and investments in generation, transmission, and distribution assets covered by regulatory cost-recovery mechanisms. Its growth plan centers on grid modernization and strengthening storm resilience, alongside demand growth from AWS and Meta data centers and traditional industries, including steel, liquefied natural gas, and petrochemicals. The company emphasizes that signed data center agreements require those customers to cover the full cost of serving them and their share of fixed costs, and it expects them to generate 7 billion dollars in customer bill benefits.

In Q2 of fiscal year 2026, Entergy reported adjusted earnings per share of 1.03 dollars, down slightly year over year because weather returned to levels closer to normal compared with the hotter weather in 2025. Excluding the impact of weather, retail sales growth was positive, driven by a 10% increase in industrial sales as new projects began operations and existing facilities expanded. The latest available EDGAR data for Q1 of fiscal year 2026 showed revenue of 3.2 billion dollars, net income of 390.8 million dollars, and earnings per share of 0.83 dollars, while fiscal year 2025 revenue was approximately 12.9 billion dollars and net income was 1.8 billion dollars.

During the trailing twelve-month period through 2026, Entergy recorded revenue of 13.3 billion dollars, net income of 1.8 billion dollars, and earnings per share of approximately 3.90 dollars. The call did not provide a financial breakdown of revenue or earnings by operating segment, but it explained that the technology sector is the largest contributor to demand growth within the five-year plan, alongside strong demand from traditional industries. The opportunity pipeline includes 7 to 12 gigawatts of potential demand from hyperscale computing projects and 3 to 5 gigawatts of interest from traditional industrial sectors.

What's Driving the Stock

  • On July 29, 2026, management maintained its adjusted earnings per share guidance for fiscal year 2026 and its outlook through 2030, saying execution remained on track despite Q2 fiscal year 2026 earnings being slightly lower year over year.
  • Data centers represent the largest demand driver in the five-year plan; Entergy has a potential pipeline of 7 to 12 gigawatts for hyperscale computing projects, while indicating that the initial volume of demand before probability weighting is larger, without raising its official range during the July 29, 2026 call.
  • Industrial sales rose 10% excluding the impact of weather in Q2 of fiscal year 2026 as steel, liquefied natural gas, and petrochemical projects expanded, while the company estimates additional interest from traditional industries at approximately 3 to 5 gigawatts.
  • Entergy expects data center agreements signed through July 29, 2026 to generate 7 billion dollars in customer bill benefits, based on a model requiring data centers to pay the full cost of service and a share of fixed costs; Louisiana supported this approach through an executive order issued in late June 2026 that links sales tax exemptions to customer protection, reliability, and community benefit standards.
  • The grid reliability program has expanded to more than 400 self-healing networks serving more than half a million customers and, since installations began in 2021, has prevented more than 700 thousand customer outages and approximately 80 million outage minutes. Entergy Texas also closed a 200 million dollar grant from the Texas Energy Fund in June 2026, increasing the state's accelerated resilience plan to 337 million dollars at no cost to customers.

Buying & Selling Case

▲ Buying Case4 pts

  • +The combination of 7 to 12 gigawatts of hyperscale computing opportunities and 3 to 5 gigawatts of traditional industrial interest provides a clear path to expanding the demand base, and the story does not depend entirely on a single customer or industry, according to the figures management presented on July 29, 2026.
  • +The structure of data center contracts protects existing customers and the balance sheet by requiring new customers to cover their full incremental costs and a share of fixed costs, and Entergy expects signed agreements to generate 7 billion dollars in customer bill benefits.
  • +The company maintained its fiscal year 2026 guidance and outlook through 2030, while targeting a ratio of cash flow from operations to debt of at least 15% under the Moody's methodology throughout the forecast period.
  • +Regulated investments support asset base growth and improved service quality; the number of self-healing networks has exceeded 400, more than one thousand miles of transmission lines are being developed, and the Saint Bernard project includes replacing or reinforcing approximately 640 distribution and transmission poles to withstand winds of up to 150 miles per hour.

▼ Selling Case6 pts

Valuation

The analyst consensus rates ETR a "Buy," with an average price target of 123.91 dollars and a wide range between 105 and 135 dollars. The average target is above the 52-week range high of 118.45 dollars, while the highest target is clearly above that high and the lowest target is below it, reflecting differing estimates of how quickly data center demand will convert into earnings and how regulatory and financing risks should be priced. The context does not provide a valid comparable earnings multiple, so the valuation here is based on the target range versus the 52-week range of 86.40 to 118.45 dollars and the Buy consensus.

BuyAnalyst target: $123.91(+17.6%)

Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.

FAQ

What is the primary driver of Entergy's growth in the coming years?

The technology sector is the largest contributor to demand growth within Entergy's five-year plan, with a potential pipeline of 7 to 12 gigawatts for hyperscale computing projects. This is supplemented by 3 to 5 gigawatts of interest from traditional industrial sectors, including steel, liquefied natural gas, and petrochemicals. In Q2 of fiscal year 2026, industrial sales rose 10% excluding the impact of weather as new projects began operations and existing facilities expanded.

How does Entergy prevent data centers from raising costs for existing customers?

Entergy applies the Fair Share Plus commitment, which requires data centers to cover the full incremental cost of serving them and pay a share of fixed costs through minimum bill provisions. The company expects agreements signed through July 29, 2026 to provide 7 billion dollars in customer bill benefits. Meta in Louisiana also pays a full tariff that includes contributions toward the costs of past and future storms and resilience investments.

Did Entergy reaffirm its fiscal year 2026 guidance?

Management reaffirmed its adjusted earnings per share guidance for fiscal year 2026 and its outlook through 2030 during the July 29, 2026 call. Adjusted earnings per share were 1.03 dollars in Q2 of fiscal year 2026, down slightly year over year because weather was closer to normal compared with 2025. Management expects most annual earnings growth to appear in Q4 of fiscal year 2026 following an expected increase in the impact of operating and maintenance expenses equivalent to 0.05 to 0.10 dollars per share in Q3.

Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

  • −A significant portion of the growth plan depends on converting data center interest into actual agreements and projects; the company described an important share of new activity on July 29, 2026 as early indications of interest and maintained its hyperscale computing range at 7 to 12 gigawatts without increasing it.
  • −Data center expansion faces regulatory and local risks, as New Orleans was subject to a temporary data center moratorium on July 29, 2026, while service for Meta's expansion remained subject to regulatory proceedings for which no final decision was provided in the call transcript.
  • −The growth opportunities require substantial generation and transmission capacity; Entergy had secured only approximately 7.5 gigawatts of power plant equipment against a total opportunity range of 10 to 17 gigawatts and had not added new equipment since investor day through the July 29, 2026 call. Tight equipment markets or delays in plant construction could constrain the timing of new load connections.
  • −Adjusted earnings per share of 1.03 dollars in Q2 of fiscal year 2026 were slightly below the comparable period, and management expects the impact of operating and maintenance expenses in Q3 of fiscal year 2026 to increase by the equivalent of 0.05 to 0.10 dollars per share year over year. It also expects most of the annual earnings increase to occur in Q4 of fiscal year 2026, increasing the sensitivity of results to any deviation in execution or weather near year-end.
  • −Financing the investment plan with equity dilutes shareholders' ownership; in May 2026, the company completed an offering of forward equity contracts worth 2.175 billion dollars, then settled 8.7 million shares on June 22, 2026 for net proceeds of 672 million dollars, and stated that the higher share count was among the factors pressuring quarterly results.
  • −Net insider transactions during the three months ended August 6, 2026 amounted to 2.7 million dollars in sales, with one purchase and three sales. This is a weak trading signal on its own because insider sales may have been prearranged, and the context provides no evidence to the contrary.
How much is Entergy investing in grid resilience and reliability?

Entergy has deployed more than 400 self-healing networks serving more than half a million customers and says the program has prevented more than 700 thousand outages and approximately 80 million outage minutes since 2021. In Saint Bernard, the project includes replacing or reinforcing approximately 640 distribution and transmission poles with infrastructure designed to withstand winds of up to 150 miles per hour. In June 2026, a 200 million dollar Texas Energy Fund grant increased the value of Entergy Texas's accelerated resilience plan to 337 million dollars at no cost to customers.

What are the main risks that could disrupt Entergy's ability to benefit from data center demand?

A portion of demand remained at the indication-of-interest stage on July 29, 2026, and the company did not raise its hyperscale computing opportunity range of 7 to 12 gigawatts. New Orleans was subject to a temporary data center moratorium, while regulatory proceedings continued for additional service to the Meta project. Entergy had also secured approximately 7.5 gigawatts of power plant equipment against a total opportunity range of 10 to 17 gigawatts, making equipment availability and the timing of approvals and execution critical factors.