12 Best Electric Utility Stocks to Buy Now

6. Entergy Corporation (NYSE:ETR)

Number of Hedge Fund Investors: 51

One of the Best Utility Stocks, Entergy Corporation (NYSE:ETR) is a holding company that generates and distributes energy to about 3 million people in Arkansas, Louisiana, Mississippi, and Texas through five regulated integrated utilities. Its rate-regulated owned and leased power-producing capacity of 24 gigawatts makes it one of the nation’s biggest power producers. It was the US’s second-largest nuclear owner before retiring and selling its Northeast nuclear power plants in 2014. In Louisiana, it intends to sell its two small gas utilities.

Entergy Corporation (NYSE:ETR) projects industrial sales to rise at a compound annual rate of 12% to 13% between 2024 and 2028 and announced a 2024 adjusted EPS of $3.65, placing it in the top end of its projection range. Sales in the industrial business grew by 15% in Q4 and 8% for the entire year, mostly due to the incorporation of two big hyperscale data centers into its outlook. Over the next four years, the firm intends to invest $37 billion, with a special focus on gas and renewable projects. The business also obtained important regulatory approvals, such as resilience investments in Louisiana, Texas, and New Orleans, as well as final settlements for SERI.

Following the Q4 results, BofA analyst Ross Fowler raised Entergy Corporation (NYSE:ETR)’s price objective from $82 to $88 on February 19. According to the analyst’s research note, Entergy provided an optimistic business update, including a raised earnings forecast, capital spending plan, and sales growth projection, which the firm believes supports the stock’s higher valuation.