Entergy Corporation (ETR) and Xcel Energy Inc. (XEL) are leading utilities in the U.S. electric power industry, both heavily investing in infrastructure development and grid modernization. Entergy operates a generating capacity of 25,000 MW, with over 5,000 MW from nuclear sources, serving millions of customers. Xcel serves millions of electricity and natural gas customers across the U.S. through four regulated subsidiaries, benefitting from a growing customer base and heightened demand from data centers.
Entergy’s earnings per share are projected at $4.40 in 2026 and $5.03 in 2027, showing growth rates of 12.53% and 14.39%, respectively. Meanwhile, Xcel’s earnings are estimated at $4.11 in 2026 and $4.49 in 2027, with growth rates of 8.16% and 9.17%. Entergy also offers a higher return on equity of 10.75% compared to Xcel’s 10.37%. Both companies plan significant capital investments, with Entergy allocating $57 billion from 2026-2029 and Xcel planning $60 billion from 2026-2030 for grid modernization and renewable generation.
In the past six months, Entergy’s stock has surged by 19.4%, outperforming Xcel’s 6.7% growth. Both companies have higher dividend yields than the S&P 500, with Xcel at 2.99% and Entergy at 2.30%. Currently, both companies hold a Zacks Rank of #3 (Hold), though Entergy appears more attractive based on earnings growth, return on equity, and recent price performance.
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