Low-Beta Defensive Stocks Amid High Inflation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Inflation Pressure: The consumer price index (CPI) rose 0.9% in March, bringing the annual inflation rate to 3.3%, the highest in nearly a year, posing significant challenges for the Federal Reserve's monetary policy, potentially leading to interest rate hikes.
- Defensive Stock Recommendations: In the high-inflation environment, we recommend buying four low-beta defensive stocks: Atmos Energy, American States Water, Keurig Dr Pepper, and Entergy, all of which have seen upward revisions in earnings estimates over the past 60 days, indicating solid growth potential.
- Atmos Energy Performance: Atmos Energy has an expected earnings growth rate of 10.5% for the current year, with a 1.2% upward revision in earnings estimates over the last 60 days, serving 3.3 million customers across over 1,400 communities, showcasing a strong market position.
- Keurig Dr Pepper Growth Potential: Keurig Dr Pepper has an expected earnings growth rate of 11.2% for the current year, with a 5.6% upward revision in earnings estimates over the last 60 days, and its diverse brand portfolio holds a significant share in the North American market, demonstrating robust competitive strength.
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Analyst Views on ETR
Wall Street analysts forecast ETR stock price to fall
15 Analyst Rating
11 Buy
4 Hold
0 Sell
Moderate Buy
Current: 115.570
Low
86.00
Averages
103.87
High
115.00
Current: 115.570
Low
86.00
Averages
103.87
High
115.00
About ETR
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. The Company operates primarily through a single segment, Utility. The Utility segment includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans. The Utility segment includes five retail electric utility subsidiaries: Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, and Entergy Texas, Inc. These companies generate, transmit, distribute, and sell electric power to retail and wholesale customers in Arkansas, Louisiana, Mississippi, and Texas. The Company owns and operates power plants with approximately 25,000 MW of electric generating capacity. It delivers electricity to approximately three million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Low-Beta Defensive Stocks Amid High Inflation
- Inflation Pressure: The consumer price index (CPI) rose 0.9% in March, bringing the annual inflation rate to 3.3%, the highest in nearly a year, posing significant challenges for the Federal Reserve's monetary policy, potentially leading to interest rate hikes.
- Defensive Stock Recommendations: In the high-inflation environment, we recommend buying four low-beta defensive stocks: Atmos Energy, American States Water, Keurig Dr Pepper, and Entergy, all of which have seen upward revisions in earnings estimates over the past 60 days, indicating solid growth potential.
- Atmos Energy Performance: Atmos Energy has an expected earnings growth rate of 10.5% for the current year, with a 1.2% upward revision in earnings estimates over the last 60 days, serving 3.3 million customers across over 1,400 communities, showcasing a strong market position.
- Keurig Dr Pepper Growth Potential: Keurig Dr Pepper has an expected earnings growth rate of 11.2% for the current year, with a 5.6% upward revision in earnings estimates over the last 60 days, and its diverse brand portfolio holds a significant share in the North American market, demonstrating robust competitive strength.
See More
TSMC Reports 35% Revenue Growth in Q1
- TSMC's Strong Performance: TSMC reported a 35% year-over-year revenue increase in Q1, with March alone seeing a 45% surge, indicating robust demand in the semiconductor market that could help Nvidia's stock break free and join the ranks of memory stocks.
- Intel Price Target Raised: Melius Research raised Intel's price target from $58 to $75 while maintaining a buy rating, reflecting optimism about its partnerships with Elon Musk's Terafab project and Google, with CEO Lip-Bu Tan's leadership being widely acknowledged.
- UBS Downgrades ServiceNow: UBS downgraded ServiceNow from buy to hold, citing weakened confidence in its ability to withstand AI disruption, despite the stock already being down 41% year-to-date, indicating a significant shift in analyst sentiment.
- Southern Company Price Target Increased: Citi raised Southern Company's price target from $107 to $114, as analysts see growth potential amid the surge in demand for electricity driven by AI data centers, maintaining a buy rating and reflecting optimism in the utility sector.
See More
FS Credit Opportunities and Entergy Announce Dividend Payments
- FS Credit Opportunities Dividend: The Board of Directors announced a monthly distribution of $0.0583 per share for April 2026, payable on April 30, 2026, to shareholders of record as of April 23, 2026, reflecting the company's commitment to shareholder returns and stable cash flow.
- Entergy Quarterly Dividend: Entergy's board declared a quarterly dividend of $0.64 per share, payable on June 1, 2026, to shareholders of record as of May 1, 2026, highlighting the company's consistent dividend payments since 1988, which reinforces investor confidence.
- Plains Quarterly Distribution: Plains All American Pipeline and Plains GP Holdings announced quarterly cash distributions of $0.4175 per unit for Q1 2026, payable on May 15, 2026, demonstrating the companies' ongoing commitment to shareholder returns amid stable cash flow.
- Dividend Consistency: The distribution amounts for PAA and PAGP remain unchanged from February 2026, indicating a strategic focus on maintaining stable shareholder returns in the current economic climate, which is likely to enhance investor trust.
See More
Entergy Releases 2025 Performance Report Highlighting Strategic Achievements
- Economic Development Contribution: In 2025, Entergy attracted or expanded 85 economic projects, resulting in over $77 billion in capital investment and 12,000 new jobs, demonstrating the company's active role in driving regional economic growth.
- Grid Resilience Enhancement: By the end of 2025, Entergy invested over $800 million in accelerated resilience projects aimed at reducing outages and speeding up restoration, thereby improving the reliability of power supply for customers.
- Customer Cost Control: The company is committed to helping customers lower their bills through energy efficiency initiatives, including energy audits, incentives, and products, ensuring that financially struggling customers can better manage their energy expenses.
- Community Responsibility Implementation: Entergy's corporate social responsibility efforts in 2025 resulted in over $145 million in economic impact across its service area, with employees contributing 169,000 hours of volunteer service, highlighting the company's commitment to community engagement.
See More
Entergy Releases 2025 Performance Report Highlighting Strategic Achievements
- Economic Development Contribution: In 2025, Entergy attracted or expanded 85 economic projects, resulting in over $77 billion in capital investment and 12,000 new jobs, demonstrating the company's active role in driving regional economic growth.
- Grid Resilience Improvement: By the end of 2025, Entergy invested over $800 million in accelerated resilience projects aimed at reducing outages and speeding up restoration, thereby enhancing the reliability of power supply for customers.
- Affordability for Customers: The company is committed to helping customers lower their energy bills through energy efficiency initiatives, including energy audits and incentives, ensuring that financially struggling customers can better manage their energy expenses.
- Community Empowerment and Responsibility: Entergy's corporate social responsibility efforts in 2025 resulted in over $145 million in economic impact for communities, with employees contributing 169,000 hours of volunteer service, highlighting the company's long-term commitment to community support.
See More
Entergy Declares $0.64 Quarterly Dividend, Consistent Yield
- Dividend Declaration: Entergy has declared a quarterly dividend of $0.64 per share, maintaining consistency with previous quarters, which underscores the company's ongoing commitment to stable cash flow and shareholder returns.
- Stable Yield: The forward yield of 2.23% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking reliable income.
- Shareholder Assurance: The dividend will be payable on June 1, with a record date of May 1, ensuring shareholder rights at a critical juncture, thereby enhancing investor confidence.
- Signal of Sustained Growth: Entergy has announced the same dividend for three consecutive quarters, indicating stability in profitability and cash flow management, which may lay the groundwork for future growth.
See More
Low-Beta Defensive Stocks Amid High Inflation
- Inflation Pressure: The consumer price index (CPI) rose 0.9% in March, bringing the annual inflation rate to 3.3%, the highest in nearly a year, posing significant challenges for the Federal Reserve's monetary policy, potentially leading to interest rate hikes.
- Defensive Stock Recommendations: In the high-inflation environment, we recommend buying four low-beta defensive stocks: Atmos Energy, American States Water, Keurig Dr Pepper, and Entergy, all of which have seen upward revisions in earnings estimates over the past 60 days, indicating solid growth potential.
- Atmos Energy Performance: Atmos Energy has an expected earnings growth rate of 10.5% for the current year, with a 1.2% upward revision in earnings estimates over the last 60 days, serving 3.3 million customers across over 1,400 communities, showcasing a strong market position.
- Keurig Dr Pepper Growth Potential: Keurig Dr Pepper has an expected earnings growth rate of 11.2% for the current year, with a 5.6% upward revision in earnings estimates over the last 60 days, and its diverse brand portfolio holds a significant share in the North American market, demonstrating robust competitive strength.
See More
TSMC Reports 35% Revenue Growth in Q1
- TSMC's Strong Performance: TSMC reported a 35% year-over-year revenue increase in Q1, with March alone seeing a 45% surge, indicating robust demand in the semiconductor market that could help Nvidia's stock break free and join the ranks of memory stocks.
- Intel Price Target Raised: Melius Research raised Intel's price target from $58 to $75 while maintaining a buy rating, reflecting optimism about its partnerships with Elon Musk's Terafab project and Google, with CEO Lip-Bu Tan's leadership being widely acknowledged.
- UBS Downgrades ServiceNow: UBS downgraded ServiceNow from buy to hold, citing weakened confidence in its ability to withstand AI disruption, despite the stock already being down 41% year-to-date, indicating a significant shift in analyst sentiment.
- Southern Company Price Target Increased: Citi raised Southern Company's price target from $107 to $114, as analysts see growth potential amid the surge in demand for electricity driven by AI data centers, maintaining a buy rating and reflecting optimism in the utility sector.
See More
FS Credit Opportunities and Entergy Announce Dividend Payments
- FS Credit Opportunities Dividend: The Board of Directors announced a monthly distribution of $0.0583 per share for April 2026, payable on April 30, 2026, to shareholders of record as of April 23, 2026, reflecting the company's commitment to shareholder returns and stable cash flow.
- Entergy Quarterly Dividend: Entergy's board declared a quarterly dividend of $0.64 per share, payable on June 1, 2026, to shareholders of record as of May 1, 2026, highlighting the company's consistent dividend payments since 1988, which reinforces investor confidence.
- Plains Quarterly Distribution: Plains All American Pipeline and Plains GP Holdings announced quarterly cash distributions of $0.4175 per unit for Q1 2026, payable on May 15, 2026, demonstrating the companies' ongoing commitment to shareholder returns amid stable cash flow.
- Dividend Consistency: The distribution amounts for PAA and PAGP remain unchanged from February 2026, indicating a strategic focus on maintaining stable shareholder returns in the current economic climate, which is likely to enhance investor trust.
See More
Entergy Releases 2025 Performance Report Highlighting Strategic Achievements
- Economic Development Contribution: In 2025, Entergy attracted or expanded 85 economic projects, resulting in over $77 billion in capital investment and 12,000 new jobs, demonstrating the company's active role in driving regional economic growth.
- Grid Resilience Enhancement: By the end of 2025, Entergy invested over $800 million in accelerated resilience projects aimed at reducing outages and speeding up restoration, thereby improving the reliability of power supply for customers.
- Customer Cost Control: The company is committed to helping customers lower their bills through energy efficiency initiatives, including energy audits, incentives, and products, ensuring that financially struggling customers can better manage their energy expenses.
- Community Responsibility Implementation: Entergy's corporate social responsibility efforts in 2025 resulted in over $145 million in economic impact across its service area, with employees contributing 169,000 hours of volunteer service, highlighting the company's commitment to community engagement.
See More
Entergy Releases 2025 Performance Report Highlighting Strategic Achievements
- Economic Development Contribution: In 2025, Entergy attracted or expanded 85 economic projects, resulting in over $77 billion in capital investment and 12,000 new jobs, demonstrating the company's active role in driving regional economic growth.
- Grid Resilience Improvement: By the end of 2025, Entergy invested over $800 million in accelerated resilience projects aimed at reducing outages and speeding up restoration, thereby enhancing the reliability of power supply for customers.
- Affordability for Customers: The company is committed to helping customers lower their energy bills through energy efficiency initiatives, including energy audits and incentives, ensuring that financially struggling customers can better manage their energy expenses.
- Community Empowerment and Responsibility: Entergy's corporate social responsibility efforts in 2025 resulted in over $145 million in economic impact for communities, with employees contributing 169,000 hours of volunteer service, highlighting the company's long-term commitment to community support.
See More
Entergy Declares $0.64 Quarterly Dividend, Consistent Yield
- Dividend Declaration: Entergy has declared a quarterly dividend of $0.64 per share, maintaining consistency with previous quarters, which underscores the company's ongoing commitment to stable cash flow and shareholder returns.
- Stable Yield: The forward yield of 2.23% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking reliable income.
- Shareholder Assurance: The dividend will be payable on June 1, with a record date of May 1, ensuring shareholder rights at a critical juncture, thereby enhancing investor confidence.
- Signal of Sustained Growth: Entergy has announced the same dividend for three consecutive quarters, indicating stability in profitability and cash flow management, which may lay the groundwork for future growth.
See More
