Entergy Corp
NYSE:ETR
Entergy Corp
No
Economic Moat
Entergy Corp lacks an economic moat, leaving it vulnerable to competitive pressures and market challenges.
Entergy Corp
Competitive Advantages
Wide Economic Moat Companies
Entergy Corp
Glance View
Entergy Corporation, a prominent energy company in the United States, operates with a distinct focus on both regulated and unregulated business sectors. At its core lies a formidable network of electric power production facilities, strategically distributed across Arkansas, Louisiana, Mississippi, and Texas. These facilities harness a mix of fuels, including natural gas, nuclear, and renewables, underscoring Entergy's commitment to diverse energy generation. The company provides power to nearly three million customers through its regulated business, which involves the generation and retail distribution of electricity. This regulated arm ensures a steady flow of revenue, supported by regulatory frameworks that allow for the recovery of investments and operational costs through customer billing rates approved by state regulatory commissions. Simultaneously, Entergy complements its regulated operations with a competitive, non-regulated wholesale business. This segment primarily engages in selling electricity generated at its facilities to other utilities, municipalities, and power marketers. By leveraging its substantial production capacity, Entergy can capitalize on market opportunities, including the sale of surplus electricity in the open market under conditions that optimize profitability. Through its dual operations, Entergy adeptly navigates the complexities of the energy market, balancing secure, regulated returns with the potential volatility—and opportunity—of wholesale competition. This strategic positioning within the energy sector enables Entergy to effectively deliver value to its shareholders while maintaining its focus on sustainable and reliable power supply for its customers.
Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.
The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.
Note: This research does not account for survivorship bias. Past performance is not indicative of future results.
Economic Moat