Entergy Corporation (NYSE:ETR) is included among the 11 Best Utility Stocks to Invest in According to Hedge Funds.
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Entergy Corporation (NYSE:ETR) is an integrated energy company that provides electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
On December 16, Morgan Stanley lowered its price target on Entergy Corporation (NYSE:ETR) from $91 to $86, while maintaining an ‘Equal Weight’ rating on the shares. With Big Tech currently pouring billions of dollars into the ongoing AI race, the analyst believes that the utility sector’s performance will be heavily driven by data centers and growth upside next year.
To ensure it can keep up with ballooning demand, Entergy Corporation (NYSE:ETR) broke ground earlier this month to begin construction of two new combined-cycle combustion turbine generation facilities. Recently approved by the Louisiana Public Service Commission, the power plants will have a combined capacity of 1.5 GW and help power Meta’s planned data center in the state. The 15-year agreement between Entergy and the tech hyperscaler is projected to save customers approximately $650 million and help keep bills lower across Louisiana. Both projects are expected to be operational by late 2028.
Entergy Corporation (NYSE:ETR) was also recently included in our list of the 11 Energy Stocks to Buy for a Retirement Portfolio.
While we acknowledge the potential of ETR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: Retirement Stock Portfolio: 11 Energy Stocks to Buy and 14 Best Utility Dividend Stocks to Buy Now.
Disclosure: None.