About ENTERGY CORP
Entergy Corporation, together with its subsidiaries, engages in the production and distribution of electricity in the United States. It operates in two segments, Utility and Entergy Wholesale Commodities. The Utility segment 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. The Entergy Wholesale Commodities segment is involved in the ownership, operation, and decommissioning of nuclear power plants located in the northern United States; sale of electric power to wholesale customers; provision of services to other nuclear power plant owners; and ownership of interests in non-nuclear power plants that sell electric power to wholesale customers. The company generates electricity through gas, nuclear, coal, hydro, and solar power sources.
It sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. Its power plants have approximately 26,000 megawatts (MW) of electric generating capacity, which include 6,000 MW of nuclear power. The company delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy Corporation was founded in 1913 and is based in New Orleans, Louisiana.
ETR operates in the Transportation, Communications, Electric, Gas, And Sanitary Services | Utilities | headquartered in New Orleans, Louisiana | approximately 11,700 employees | led by CEO Andrew S. Marsh.
The $41.3B question: What happens when a company this good becomes this expensive?
In the constellation of American capitalism, certain companies shine brighter than others — not because they are inherently more valuable, but because they have positioned themselves at the nexus of forces that shape the economy. ENTERGY CORP /DE/ is one such company.
At $41.3B in market capitalization, ENTERGY CORP /DE/ (ETR) currently ranks #149 in our quantitative model, with a composite score of 77.4/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives ETR the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 61/100 | 30% | Strong |
| Value | 73/100 | 15% | Fair |
| Momentum | 72/100 | 25% | Accelerating |
| Investment | 61/100 | 10% | Growing |
| Stability | 90/100 | 10% | Fortress |
| Short Interest | 21/100 | 10% | High shorts |
The quality score of 61/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 16.8%
- Net Margin: 18.3%
- Gross Margin: 71.3%
These aren't just good numbers. They're the kind of numbers that make ETR a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like ETR."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. ETR is quality defined.
- Momentum is real. With a momentum score of 72/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 22.8x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
ENTERGY CORP /DE/ is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, ETR is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 77.4/100 | Rank: #149 of 3,571 stocks
Sector: Utilities
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.