Entergy (ETR): Assessing Valuation After a 29% Rise in the Past Year

Entergy (ETR) has recently caught some attention as investors take a closer look at the stock’s performance over the past year. Shares have climbed 29% in that time, which offers an interesting backdrop for anyone tracking the utility sector.

See our latest analysis for Entergy.

Momentum appears to be building for Entergy, with a strong climb over the past year reflected in a 28.75% total shareholder return and steady gains in recent months. While the utilities sector tends to move gradually, this kind of sustained performance suggests that investors are seeing growth potential or a shift in risk outlook for the stock.

If you’re interested in casting a wider net beyond utilities, now is a smart moment to broaden your search and discover fast growing stocks with high insider ownership

The big question now is whether Entergy’s impressive run still leaves room for upside, or if recent gains mean the stock’s future growth is already fully reflected in its current price. Is a buying opportunity emerging, or has the market already priced it in?

Most Popular Narrative: 6.8% Undervalued

Entergy’s most widely followed narrative believes the company is trading below its fair value, with its fair value set at $102.46 versus a last close of $95.48. With analysts projecting growth and a premium sector status, the narrative’s fair value signals room for further gains as key catalysts unfold.

"Strong growth in electricity demand and regulatory support, combined with major capital investments, are set to drive higher revenues and improve earnings consistency. Focus on renewables, grid resilience, and operational efficiency positions Entergy to benefit from decarbonization trends and sustain profitability despite rising costs."

Read the complete narrative.

Want to know what’s fueling these ambitious price targets and sector-beating growth projections? The real story sits beneath the headlines; one bold assumption could completely change your expectations. The full narrative reveals which future numbers analysts are betting on. Find out the surprising ingredient they think could unlock more value.

Result: Fair Value of $102.46 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing regulatory uncertainty and the threat of costly extreme weather events could quickly undermine Entergy’s optimistic outlook and future growth assumptions.

Find out about the key risks to this Entergy narrative.

Another View: Multiples Tell a Different Story

Looking at Entergy’s price-earnings ratio of 23.9 times, it stands above both its peers (19.5x) and the broader US electric utilities sector (20.6x). While this premium might reflect quality or growth, it could also signal an elevated valuation risk. What if the market starts to favor value instead of growth?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Entergy Narrative

If you have a different perspective or want to dig into the numbers yourself, you can build your own story just as quickly and easily. Do it your way

A great starting point for your Entergy research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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