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Vistra Corp. (VST) Laps the Stock Market: Here's Why

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Vistra Corp. (VST - Free Report) closed the latest trading day at $126.29, indicating a +1.47% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.64%. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 0.31%.

The the stock of company has fallen by 25.77% in the past month, lagging the Utilities sector's gain of 1.38% and the S&P 500's loss of 7.69%.

Investors will be eagerly watching for the performance of Vistra Corp. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.50, marking a 552.17% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.86 billion, indicating a 59.01% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.12 per share and revenue of $21.31 billion, which would represent changes of -12.57% and +23.72%, respectively, from the prior year.

Any recent changes to analyst estimates for Vistra Corp. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.26% decrease. Vistra Corp. currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Vistra Corp. is currently being traded at a Forward P/E ratio of 20.34. This represents a premium compared to its industry's average Forward P/E of 18.27.

It is also worth noting that VST currently has a PEG ratio of 0.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Utility - Electric Power industry stood at 2.64 at the close of the market yesterday.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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