Entergy Corp. Scales a 52-Week High - Analyst Blog

On Jun 3, 2014, shares of Entergy Corporation ETR reached a new 52-week high of $76.27, finally closing at $76.22. The closing price reflects a gain of almost 14.9% over the past one-year period. Average volume of shares traded over the last three months stood at 1,832,390.

Electric utility, Entergy Corporation, a Zacks Rank #2 (Buy) stock, delivered positive earnings surprises in the last four quarters with an average beat of 6.15%. The company posted impressive first-quarter 2014 results with its earnings outpacing the Zacks Consensus Estimates on higher wholesale electricity prices owing to a harsh winter and higher revenues from the northeast nuclear fleet in the U.S.

For 2014, Entergy Corp. raised its operating earnings guidance to the range of $5.55 to $6.75 per share from $4.60 to $5.40 based on a strong first quarter, and increased volatility in northeast Vermont and forward power market prices. The Zacks Consensus Estimate for 2014 is pegged at $6.16 per share, projecting a year-over-year improvement of 14.88%.

The cost-cutting efforts of Entergy, strong industrial growth on the Gulf Coast and improvement in forward power prices in the Northeast will help the company to sustain its strong performance. The retail sales growth in its service territories will also benefit the company.

We appreciate Entergy's steady effort toward reducing debt, thereby improving margins. In addition, the company's stable cash position and strong cash-generating ability should help meet the fund requirements for operational expansion.  

Other Stock to Consider

Other better-ranked stocks in the utility sector include Black Hills Corp. BKH, CPFL Energia S.A. CPL and Korea Electric Power Corp. KEP. All of these stocks hold a Zacks Rank #1 (Strong Buy).