Entergy Just Bounced Off of the Lower Rail of an Upward Sloped Trend Channel
Entergy Corp. (NYSE: ETR) is an electric utility company that provides electricity to customers in Arkansas, Louisiana, Mississippi, and Texas. The company serves 2.9 million customers in the region.
Entergy has been trending higher essentially since the beginning of 2014. It has gradually moved from the $50 range to a recent high of $90.79 with dividends included. The stock has outperformed the utilities sector as a whole and the overall market over the past five years.
In the more recent past, the stock has been trending higher within the confines of an upwardly sloped trend channel and it just hit the lower rail of that channel in the last few trading sessions.
We see on the chart how the stock has reacted after hitting the lower rail of the channel in the past. You can also see how the stock was in oversold territory toward the end of December. When these two events have occurred together, the stock has performed very well in the weeks to follow.
Entergy is a bit of a mixed picture when it comes to the fundamentals—the management efficiency ratings are good, but the sales and earnings growth aren’t so great. The company has a return on equity of 16.4% and a profit margin of 14.4%. Earnings have only grown by 6% per year over the last three years and sales have actually declined at a rate of 1% per year during that span.
The company does yield 4.2% currently and that is an obvious attraction for income investors.
ETR's RSI Indicator peaks and leaves overbought zone
The 10-day RSI Indicator for ETR moved out of overbought territory on February 20, 2025. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 instances where the indicator moved out of the overbought zone. In of the 38 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ETR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ETR broke above its upper Bollinger Band on February 18, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on February 10, 2025. You may want to consider a long position or call options on ETR as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ETR just turned positive on February 12, 2025. Looking at past instances where ETR's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ETR advanced for three days, in of 344 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 300 cases where ETR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. ETR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.527) is normal, around the industry mean (1.723). P/E Ratio (9.436) is within average values for comparable stocks, (23.516). Projected Growth (PEG Ratio) (2.211) is also within normal values, averaging (2.634). Dividend Yield (0.042) settles around the average of (0.074) among similar stocks. P/S Ratio (1.831) is also within normal values, averaging (3.121).
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General Information
a company which generates, transmits and distributes electricity
Industry ElectricUtilities