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Reasons to Add Vistra (VST) to Your Portfolio Right Now
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Vistra Corp. (VST - Free Report) , an electricity and power generation company, is poised to grow on the back of its long-term capital investment plans, stable dividend payments and strong financial position. Let’s focus on the factors that make this Zacks Rank #1 (Strong Buy) stock a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for VST’s 2023 earnings per share (EPS) is pegged at $3.11, indicating a 1% improvement over the past 60 days.
The Zacks Consensus Estimate for 2023 sales is pegged at $20.07 billion, indicating a year-over-year increase of 46.2%.
Return on Equity
Return on Equity (ROE) indicates how efficiently a company utilizes shareholders’ funds to generate returns. At present, Vistra’s ROE is 22.8%, higher than the industry average of 6.2%.
Liquidity
Vistra has a current ratio of 1.17, better than the industry’s average of 0.83. This implies that the company has sufficient financial capability to pay its short-term debt obligations.
Dividend History
The utility company has been consistently paying dividends to its shareholders. It declared a quarterly dividend of 20.6 cents per share for third-quarter 2023, which is 12% up from previous year’s quarter. Currently, the annual payout stands at 82.4 cents per share. Vistra is targeting $300 million in dividends annually.
VST’s current dividend yield is 2.6%, better than the Zacks S&P 500 Composite's average of 1.65%.
Investments & Energy Transition
Vistra has been making systematic capital expenditures to boost its portfolio. It plans to invest $1,722 million in 2023 to further strengthen its operations.
The company is aiming to achieve net-zero emissions by 2050. It currently has 3,750 megawatts (MW) of zero-carbon generation online. In August 2023, it completed the 350 MW Phase III expansion of its Moss Landing Energy Storage Facility. Vistra has 15,150 MW of fossil generation retired since 2010 and expects to reach 20,000 MW by 2027 (from the 2010 baseline).
Price Performance
In the past year, VST’s shares have risen 25.9% against the industry’s decline of 15.8%.
PNM Resources’ long-term (three to five years) earnings growth rate is 4.5%. The Zacks Consensus Estimate for the company’s 2023 EPS is pinned at $2.72, implying a year-over-year increase of 1.1%.
FirstEnergy’s long-term earnings growth rate is 6.4%. The Zacks Consensus Estimate for the company’s 2023 EPS is pegged at $2.53, indicating a year-over-year improvement of 5%.
Portland’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for the company’s 2023 EPS stands at $2.73, indicating an improvement of 1.5% in the past 60 days.
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Reasons to Add Vistra (VST) to Your Portfolio Right Now
Vistra Corp. (VST - Free Report) , an electricity and power generation company, is poised to grow on the back of its long-term capital investment plans, stable dividend payments and strong financial position.
Let’s focus on the factors that make this Zacks Rank #1 (Strong Buy) stock a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for VST’s 2023 earnings per share (EPS) is pegged at $3.11, indicating a 1% improvement over the past 60 days.
The Zacks Consensus Estimate for 2023 sales is pegged at $20.07 billion, indicating a year-over-year increase of 46.2%.
Return on Equity
Return on Equity (ROE) indicates how efficiently a company utilizes shareholders’ funds to generate returns. At present, Vistra’s ROE is 22.8%, higher than the industry average of 6.2%.
Liquidity
Vistra has a current ratio of 1.17, better than the industry’s average of 0.83. This implies that the company has sufficient financial capability to pay its short-term debt obligations.
Dividend History
The utility company has been consistently paying dividends to its shareholders. It declared a quarterly dividend of 20.6 cents per share for third-quarter 2023, which is 12% up from previous year’s quarter. Currently, the annual payout stands at 82.4 cents per share. Vistra is targeting $300 million in dividends annually.
VST’s current dividend yield is 2.6%, better than the Zacks S&P 500 Composite's average of 1.65%.
Investments & Energy Transition
Vistra has been making systematic capital expenditures to boost its portfolio. It plans to invest $1,722 million in 2023 to further strengthen its operations.
The company is aiming to achieve net-zero emissions by 2050. It currently has 3,750 megawatts (MW) of zero-carbon generation online. In August 2023, it completed the 350 MW Phase III expansion of its Moss Landing Energy Storage Facility. Vistra has 15,150 MW of fossil generation retired since 2010 and expects to reach 20,000 MW by 2027 (from the 2010 baseline).
Price Performance
In the past year, VST’s shares have risen 25.9% against the industry’s decline of 15.8%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks in the same industry are PNM Resources Inc. (PNM - Free Report) , FirstEnergy Corp. (FE - Free Report) and Portland General Electric Co. (POR - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PNM Resources’ long-term (three to five years) earnings growth rate is 4.5%. The Zacks Consensus Estimate for the company’s 2023 EPS is pinned at $2.72, implying a year-over-year increase of 1.1%.
FirstEnergy’s long-term earnings growth rate is 6.4%. The Zacks Consensus Estimate for the company’s 2023 EPS is pegged at $2.53, indicating a year-over-year improvement of 5%.
Portland’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for the company’s 2023 EPS stands at $2.73, indicating an improvement of 1.5% in the past 60 days.