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Reasons to Add Vistra Energy (VST) Stock in Your Profile

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Vistra Energy Corp.’s (VST - Free Report) focus to maintain strong balance sheet, growth via strategic acquisitions and steady investments will act as catalysts.

Let’s focus on the factors that make Vistra Energy an appropriate investment option at the moment.

Zacks Rank & VGM Score

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vistra Energy has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.

Price Performance

On a long-term basis, shares of the company have outperformed the industry. In the past three years, the company’s shares have gained 34.3% against the industry’s decline of 0.7%.

Growth Projections

The Zacks Consensus Estimate for 2020 earnings is pegged at 2.55 cents per share on revenues of $13.80 billion. This indicates 23.19% and 16.85% increase of the bottom and the top line, respectively, from the year-ago period’s reported figures.

The company’s long-term (three to five years) earnings growth is pegged at 11.90%.

Dividend Yield & Return on Equity (ROE)

Currently, the company has a dividend yield of 2.68% compared with the Zacks S&P 500 composite’s 1.87%.

ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12 months for the company is 10.84% compared with the industry’s ROE of 9.54%.

Stocks to Consider

A few better-ranked stocks from the same sector are Southwest Gas Corporation (SWX - Free Report) , Sempra Energy (SRE - Free Report) and NextEra Energy, Inc. (NEE - Free Report) . All the three stocks hold a Zacks Rank #2 (Buy) at present.

The long-term earnings growth rate of Southwest Gas, Sempra Energy and NextEra Energy is pegged at 6%, 6.90% and 7.70%, respectively.

Southwest Gas, Sempra Energy and NextEra Energy have a trailing four-quarter positive earnings surprise of 3.92%, 32.76% and 7.69%, respectively, on average.

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