Entergy (NYSE:ETR) shares are up on Friday following a significant agreement with Meta Platforms, Inc. (NASDAQ:META).

This partnership is part of a broader strategy to enhance grid reliability and support long-term infrastructure investments.

• Entergy shares are testing new highs. What’s behind ETR new highs?

Details

The agreement is structured to ensure Meta pays its full cost of service. With this, Entergy expects to generate about $2 billion in customer savings for Entergy Louisiana over the next 20 years.

The deal builds upon the previously announced $650 million deal with Meta. Overall, Entergy expects to see a total of around $2.65 billion in customer benefits.

This deal not only aims to lower energy costs for vulnerable customers but also promises to create thousands of jobs.

In addition to the economic benefits, the project is expected to generate increased tax revenues, which will support local schools and public safety initiatives.

Expansion Plans

Entergy Louisiana, with funding from Meta, is undertaking a major energy expansion that includes seven new natural gas plants totaling over 5,200 MW.

It is designed for future carbon capture and hydrogen co-firing. The plan also adds around 240 miles of 500 kV transmission lines connecting South Louisiana, North Louisiana and Arkansas, along with battery storage at three sites and nuclear power uprates.

Meta is supporting the development of up to 2,500 MW of new renewable energy, and both parties have signed an MOU to explore future nuclear power projects.

Technical Analysis

The broader market saw declines on Thursday, with the Russell 2000 falling by 0.58% and the S&P 500 down by 0.42%. Entergy’s stock is moving up while the overall market is struggling, suggesting that the positive news surrounding the company is driving its performance independently of broader market trends.

Currently, Entergy’s stock is trading 4.8% above its 50-day simple moving average (SMA) and 8.6% above its 100-day SMA, indicating a strong bullish trend in the short to medium term. Shares have increased 22.42% over the past 12 months and are currently positioned closer to their 52-week highs than lows, reflecting positive momentum.

The RSI is at 48.96, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold at this time. Meanwhile, MACD is at 0.1276, below its signal line at 0.7070, indicating bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum for Entergy at this point.

  • Key Resistance: $107
  • Key Support: $102.50

Earnings & Analyst Outlook

Entergy is slated to provide its next financial update on April 28 (estimated).

  • EPS Estimate: 92 cents (Up from 82 cents)
  • Revenue Estimate: $3.02 billion (Up from $2.85 billion)
  • Valuation: P/E of 26.3x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $104.11. Recent analyst moves include:

  • Citigroup: Neutral (Raises target to $116 on March 18)
  • Evercore ISI Group: In-Line (Raises target to $107 on March 5)
  • Keybanc: Overweight (Raises target to $111 on March 4)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Entergy, highlighting its strengths and weaknesses compared to the broader market:

  • Value Rank: 64.92 — Indicates moderate value relative to peers.
  • Growth Rank: 89.07 — Suggests strong growth potential.
  • Quality Rank: 76.53 — Reflects a solid balance sheet and operational efficiency.
  • Momentum Rank: 76.11 — Indicates positive momentum in stock performance.

The Verdict: Entergy’s Benzinga Edge signal reveals a growth-heavy profile, suggesting that while the stock is trading at a premium, it has strong growth and momentum indicators that may appeal to investors.

Top ETF Exposure

  • Reaves Utility Income Fund (AMEX:UTG): 4.19% Weight
  • Virtus Reaves Utilities ETF (NYSE:UTES): 4.94% Weight
  • Global X US Electrification ETF (NASDAQ:ZAP): 4.16% Weight

Significance: Because Entergy carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

ETR Stock Price Activity: Entergy shares were up 8.62% at $111.73 at publication on Friday, according to Benzinga Pro data.

Photo via Black_Kira via Shutterstock