VST's 69% stock surge, rising earnings outlook and strong hedging strategy highlight its edge in the clean power transition.
Vistra (VST) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
NEE and VST, both investing significantly to lower emissions by expanding their generation portfolios with clean energy assets.
Vistra trades at a lower TTM EV/EBITDA than peers due to volatile earnings, high debt, and capital-intensive operations in deregulated markets. Its high debt-to-equity ratio and BB+ credit rating contribute to market caution, but management aims to deleverage and achieve investment-grade ratings by 2026. Despite concerns, Vistra's forward EBITDA growth is strong, justifying a higher forward EV/EBITDA; its PEG ratio below 1.0 suggests undervaluation.
Shares of a recently-hot utility company tumbled Tuesday as an analyst questioned their valuation, while oilfield services stocks were boosted by rising crude oil futures prices.
Vistra Corp. earns a buy rating, uniquely positioned to benefit from surging power demand driven by data centers and AI. VST's growth is underpinned by premium contract opportunities, a strong pipeline, favorable PJM market fundamentals, and disciplined capital allocation. The company's robust free cash flow, improving balance sheet, and potential for investment-grade credit status support ongoing buybacks and dividends.
In the most recent trading session, Vistra Corp. (VST) closed at $209.7, indicating a +2.77% shift from the previous trading day.
VST to benefit from strong demand, robust assets, and capital returns, but earnings growth remains uneven.
Vistra's free cash flow assists in debt reduction, renewables investment and shareholder rewards, fueling long-term growth momentum.
Vistra's 33.6% six-month surge outpaces utilities, fueled by clean power growth, nuclear edge, and shareholder returns.
Vistra's strong Q2 results, guidance on growth prospects, and AI-driven demand boom supported recent share price. Record PJM auction price and expansion of natural gas fleet enhance near-term earnings visibility. Quarterly results were highlighted by +12% in EPS, +10.5% in revenue, and adjusted 2025 EBITDA guidance of $5.5-6.1bn (-2.5% to +8% YOY). I would throw cold water on optimistic sentiment, as policy uncertainty beyond 2027 and Vistra's low renewable share could limit ability to secure PPAs tied to carbon neutral.
Vistra Corp (NYSE:VST) stock is up 0.6% to trade at $198.53 at last check, not too far off from its Aug. 5 all-time high of $216.85.