Stock of the Day

May 5, 2020

Entergy (ETR)

$84.94
-$0.92 (-1.1%)
Market Cap: $36.96B

About Entergy

Entergy Corporation, together with its subsidiaries, engages in the production and retail distribution of electricity in the United States. It generates, transmits, distributes, and sells electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, including the City of New Orleans; and distributes natural gas. It also engages in the ownership of interests in non-nuclear power plants that sell electric power to wholesale customers, as well as provides decommissioning services to other nuclear power plant owners. It generates electricity through gas, nuclear, coal, hydro, and solar power sources. The company sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. The company's power plants have approximately 24,000 megawatts of electric generating capacity. It delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy Corporation was founded in 1913 and is headquartered in New Orleans, Louisiana.

Entergy Bull Case

Here are some ways that investors could benefit from investing in Entergy Co.:

  • Recent significant increase in institutional ownership, with 88.07% of the stock held by institutional investors, indicating strong confidence in the company's future performance.
  • Entergy Co. has shown robust stock performance, currently trading at $85.82, which reflects a strong market position and investor interest.
  • Rhumbline Advisers raised its stake in Entergy Co. by 103.4% in the 4th quarter, suggesting that experienced investors are bullish on the company's prospects.
  • Entergy Co. has a solid market capitalization of $36.80 billion, which provides stability and resources for growth and investment in infrastructure.
  • The company has demonstrated resilience with a price-to-earnings ratio of 35.24, indicating that investors are willing to pay a premium for its earnings potential.

Entergy Bear Case

Investors should be bearish about investing in Entergy Co. for these reasons:

  • Insider selling activity has been noted, with Deanna D. Rodriguez selling 6,088 shares, which may raise concerns about the company's short-term outlook from those within the organization.
  • The stock has a relatively high price-to-earnings ratio of 35.24, which could indicate that it is overvalued compared to its earnings, posing a risk for potential investors.
  • Despite recent gains, the stock has a 1-year low of $49.80, suggesting volatility and potential risks associated with market fluctuations.
  • Entergy Co. has a beta of 0.72, indicating lower volatility compared to the market, which may limit potential high returns for aggressive investors.
  • Recent trading volume of 4,006,557 shares, while above average, may indicate fluctuations in investor sentiment and potential uncertainty in the stock's future performance.

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