Entergy: Benefiting From Strong Texas Industrial Growth

Power Hedge
Investing Group Leader

Summary

  • Entergy Corporation is well-positioned to benefit from the rapid population growth in Texas, one of the fastest-growing states in the US.
  • The company is aggressively deploying renewable energy generation and promoting alternative fuels, despite operating in the hydrocarbon industry hub of Texas.
  • ETR plans to invest $16 billion in expanding its infrastructure to meet the increasing demand for electricity, particularly from industrial expansion in Texas.
  • Entergy has a considerably higher debt load than many of its peers, which could be a real risk in today's high interest-rate environment.
  • The stock appears to be fairly valued relative to its peers, but it is cheaper than it was back in July.
  • Looking for a helping hand in the market? Members of Energy Profits in Dividends get exclusive ideas and guidance to navigate any climate. Learn More »

A sunset drone view of a wind farm on a hilltop in Scotland

Justin Paget

Entergy Corporation (NYSE:ETR) is a regulated electric utility that serves the states of Texas, Arkansas, Louisiana, and Mississippi:

This is an area of the country that has been growing at a fairly rapid pace, particularly Texas. In fact, Texas is one

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This article was written by

Power Hedge
15.67K Followers

Power Hedge has been covering both traditional and renewable energy since 2010. He targets primarily international companies of all sizes that hold a competitive advantage and pay dividends with strong yields.

He is the leader of the investing group Energy Profits in Dividends where he focuses on generating income through energy stocks and CEFs while managing risk through options. He also provides micro and macro-analysis of both domestic and international energy companie. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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