Curious about Entergy Corporation ‘s stock price future? As a major player in the energy sector, Entergy boasts a $80.51 stock price in April 2025-but is it a golden opportunity or a risky bet? Dive into this stock price forecast to uncover its potential trajectory through 2029 and discover the smartest moves for your portfolio.
Operations
Entergy Corporation is a Fortune 500 integrated energy company headquartered in New Orleans, Louisiana, primarily engaged in electric power production and retail distribution. The company operates through two main segments: Utility and Entergy Wholesale Commodities.
- The Utility segment generates, transmits, distributes, and sells electric power across portions of Arkansas, Louisiana, Mississippi, and Texas, including the City of New Orleans, serving approximately 3 million customers. It also distributes natural gas in parts of Louisiana. Entergy’s power generation portfolio includes a mix of gas, nuclear, coal, hydro, and solar sources, with a total owned and leased capacity of about 24,000 megawatts.
- The Entergy Wholesale Commodities segment focuses on owning, operating, and decommissioning nuclear power plants and selling power to wholesale customers, though this segment is being phased out as the company shifts toward regulated utility operations and cleaner energy solutions. Entergy is investing heavily in system reliability, resilience, and renewable energy to support its Gulf Coast service territories, which are experiencing robust industrial growth.
Financial Performance and Ratios
Entergy has demonstrated solid financial performance in recent years, driven by strong load growth and favorable regulatory outcomes. As of the latest real-time data on April 9, 2025, Entergy reported a current stock price of $80.51 USD.
For the third quarter of 2024, the company reported earnings per share (EPS) of $2.99 on both an as-reported and adjusted basis, reflecting strong operational execution. For the full year 2024, Entergy’s adjusted EPS guidance was narrowed to $7.15-$7.35, indicating confidence in its financial outlook. The company’s revenue over the trailing twelve months (TTM) was $11.86 billion, with net income of $1.76 billion and an EPS of $8.20.
Key financial ratios highlight Entergy’s position:
- Current Ratio: 0.89, suggesting moderate liquidity to cover short-term obligations.
- Debt-to-Equity Ratio: 1.89, indicating a significant debt burden relative to equity, typical for capital-intensive utilities.
- Return on Equity (ROE): 11.95%, reflecting efficient use of shareholder equity to generate profits.
- Gross Margin: 46.27%, showing strong profitability from operations.
- Operating Margin: 20.36%, and Profit Margin: 14.81%, both indicating healthy earnings relative to revenue.
- Free Cash Flow: Negative at -$869.96 million TTM, due to substantial capital expenditures ($5.04 billion) outpacing operating cash flow ($4.17 billion), reflecting heavy investment in infrastructure.
Despite negative free cash flow, Entergy’s financial health remains robust, supported by consistent earnings and a focus on long-term growth projects like renewables and grid modernization.
Entergy Corporation Stock Price Performance
Entergy’s stock ( NYSE: ETR) has shown resilience and growth as of April 9, 2025. The current price of $80.51 reflects a year-to-date performance within a 1-year range of $50.19 (low) to $88.38 (high). Over the past year, the stock has risen from $53.34 in April 2024 to $80.51, a gain of approximately 51% when factoring in dividends.
Over the past month (March 10-April 9, 2025), the stock fluctuated between $78.23 and $85.66, with a slight downward trend from its early April peak. Historically, ETR has grown significantly from $29.17 in 2003 to its current level, though it remains below its 2025 year-high. The stock’s beta of 0.70 indicates lower volatility compared to the broader market, appealing to risk-averse investors.
Competitive Landscape
Entergy operates in a competitive yet regulated utility market, primarily in the U.S. Gulf Coast region, where it faces competition from other major utilities like Southern Company, Duke Energy, and NextEra Energy.
Southern Company and Duke Energy compete in adjacent southern states, offering similar electric and gas services, while NextEra stands out for its leadership in renewable energy, particularly solar and wind, which Entergy is increasingly pursuing.
Entergy’s competitive edge lies in its low industrial electricity rates (below the U.S. average), driving demand from energy-intensive industries like data centers and manufacturing in its service territories. Its nuclear fleet, one of the largest regulated portfolios in the U.S., provides a stable, low-carbon baseload, though aging plants and decommissioning costs pose challenges.
Regulatory support in its states enhances Entergy’s ability to recover investments, unlike some peers facing stricter oversight. However, exposure to Gulf Coast weather risks (e.g., hurricanes) and rising financing costs in a high-interest-rate environment could pressure margins compared to peers with more diversified geographies or stronger free cash flow profiles.
Investment Insight
Entergy Corporation’s stock may not be an ideal fit for a savvy investor’s portfolio. The company’s operating cash flows show no consistent upward trend, forcing it to rely on borrowed funds to finance operations-a situation compounded by negative working capital.
Despite a notably slow-growing earnings per share (EPS), both net and gross margins remain robust enough to support generous dividends, which exceed the market average and continue to reward shareholders. While the stock has its shortcomings, it’s unlikely to derail your portfolio, so there’s no urgent need to sell. On the flip side, there’s still potential for price appreciation worth considering.
Entergy Corporation Stock Forecast**
2025–2029 Price Targets:
When to buy and Investment Tips
Looking at the stock price chart, it’s clear that the price has risen significantly. At this point, buying is hardly worthwhile. A market correction seems highly likely in the near term, so it would be prudent to wait for it and purchase the shares at a lower price. It’s definitely not worth buying this company’s stock while it’s on an upward trend.
Dividend Policy and Buyback Policy
Entergy maintains a shareholder-friendly capital return policy, prioritizing dividends over share buybacks. The company pays an annual dividend of $4.80 per share, yielding approximately 3.18% at the current price of $80.51.
This yield is attractive within the utility sector, and Entergy has maintained dividend payments for 37 consecutive years, with the most recent quarterly payout of $1.20 per share recorded on November 13, 2024 (ex-date February 10, 2025).
The company’s payout ratio aligns with its earnings, supporting sustainability, though negative free cash flow suggests reliance on debt or cash reserves to fund dividends during heavy investment periods.
Conclusion
Entergy Corporation offers a blend of stability and growth potential, underpinned by solid financials and a reliable dividend yield. While its stock price has surged in 2025, a looming market correction could present a buying opportunity. With forecasts pointing to gradual appreciation through 2029, patience may pay off for investors seeking value in the utility sector.
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*Investment analysis involves scrutinizing over 50 different criteria to assess a company's ability to generate shareholder value. This comprehensive approach includes tracking revenue, profit, equity dynamics, dividend payments, cash flow, debt and financial management, stock price trends, bankruptcy risk, F-Score, and more. These metrics are consolidated into a straightforward Investment Scoreboard, which effectively helps predict future stock price movements.
**Use the price forecast to manage the risk of your investments.
Originally published at https://www.aipt.lt on April 10, 2025.
Entergy Stock Forecast 2025–2029: The Truth Revealed! was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.
