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Vistra Rises 41.3% in Three Months: Should You Buy the Stock?
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Key Takeaways
VST stock surged 41.3% in three months, outperforming the Utilities sector and the S&P 500.
Clean energy demand, full 2025 hedging, and federal nuclear support are driving Vistra's growth.
VST's ROE of 87.33% exceeds the industry average, and share buybacks are boosting shareholders' value.
Shares of Vistra Corp. (VST - Free Report) have rallied 41.3% in the past three months compared with its Zacks Utility- Electric Power industry’s growth of 3.5%, courtesy of its strong retail and commercial operations.
The company benefits from strong demand for its services in both the Texas and Midwest and Northeast markets. Vistra is well-positioned to benefit from President Trump’s executive order aimed at quadrupling the U.S. nuclear energy production by 2050. The directive calls for expedited licensing, streamlined regulatory processes and substantial federal investment in nuclear infrastructure. These initiatives are closely aligned with Vistra’s growth strategy.
Vistra has outperformed the Zacks Utilities sector and the S&P 500 in the past six months.
Price Performance (Three months)
Image Source: Zacks Investment Research
Another utility, NextEra Energy (NEE - Free Report) , also produces a substantial volume of clean energy from its generation assets. NextEra Energy’s shares have gained 0.3% in the last three months.
Vistra shares are trading above the 50-day and 200-day simple moving averages, indicating a bullish trend.
VST’s 50 and 200 SMA
Image Source: Zacks Investment Research
Should you consider adding VST to your portfolio only based on positive price movements? Let’s delve deeper and find out the factors that can help investors decide whether it is a good entry point to add VST stock to their portfolio.
Factors Acting as a Tailwind for Vistra Stock
The demand for clean electricity is rising across Vistra’s service regions, driven by the rapid growth of AI-powered data centers and increasing electrification of oil field operations, particularly in the Permian Basin. Vistra’s ability to generate large volumes of low- and zero-emission electricity from a diverse mix of sources, including solar, nuclear, natural gas and other alternatives, has been a key driver of its strong performance.
The company continues to benefit from a growing residential customer base and a robust hedging strategy that brings clarity to its financial outlook. As of Feb. 24, 2025, Vistra had fully hedged its expected output for the current year and secured 80% of its projected production for 2026. This proactive risk management approach strengthens financial stability and shields the company from market volatility.
Vistra is also well-positioned to expand and modernize its nuclear operations with increased efficiency and cost control. Thanks to a recent executive order and streamlined Nuclear Regulatory Commission approval timelines, nuclear projects that once faced prolonged delays can now advance more rapidly, giving Vistra a distinct edge in delivering reliable, carbon-free power.
With a total generation capacity of 41,000 MW spanning natural gas, nuclear, coal, solar, and battery storage, Vistra is strategically aligned to support rising energy demand from both commercial and industrial sectors. Its strong asset base and presence in fast-growing power markets uniquely position the company to capitalize on long-term growth opportunities and play a leading role in the ongoing clean energy transition.
Mixed Movement in Earnings Estimates for VST
The Zacks Consensus Estimate for VST’s 2025 earnings per share suggests a year-over-year decline, while 2026 earnings per share are showing improvement on a year-over-year basis.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Duke Energy Corporation’s (DUK - Free Report) 2025 and 2026 earnings per share suggests year-over-year growth of 7.12% and 6.08%, respectively. Like Vistra, Duke Energy also produces clean energy from its strong nuclear fleet.
Vistra Stock Trading at a Premium
Vistra is currently trading at a premium valuation compared to its industry, with its forward 12-month price-to-earnings (P/E) ratio at 24.03X. The industry is currently trading at 15.17X.
Image Source: Zacks Investment Research
Vistra is currently trading at a premium compared with Duke Energy. The current P/E- F12M ratio of DUK is 17.91X.
VST Stock’s ROE Higher Than its Industry
VST’s trailing 12-month return on equity (ROE) is 87.33%, way ahead of its industry average of 10.13%. ROE, a profitability measure, reflects how effectively a company is utilizing its shareholders’ funds in its operations to generate income.
Image Source: Zacks Investment Research
NextEra Energy’s ROE is substantially lower than Vistra and is currently pegged at 12.06%. NEE is also utilizing its funds better than its peers in the industry.
Vistra Raising Shareholders’ Value
Vistra continues to increase shareholders' value through its share repurchase program and dividend payments.
The company bought back shares worth over $5.2 billion from November 2021 through May 2, 2025. VST’s management expects to continue with the buyback of shares and aims to repurchase shares worth $1.5 billion through year-end 2026.
VST’s board of directors has also approved a quarterly dividend of 22.50 cents for the second quarter of 2025 and is targeting an annual dividend payment of $300 million. VST has raised its dividend 15 times in the past five years. Check VST’s dividend history here.
Summing Up
Vistra's comprehensive hedging program and planned development of clean energy projects will allow it to move toward more clean electricity generation. The new executive order will assist the company in developing new nuclear projects with shortened approval timelines.
Vistra stands to gain from the rising demand for clean electricity within its service region. Its strong hedging strategy significantly improves the visibility of its future earnings by safeguarding it from price fluctuation in future generation volumes.
Given that VST shares are currently trading at a premium, existing investors may find it wise to hold their positions in this Zacks Rank #3 (Hold) stock, benefit from dividend payouts, and consider identifying a more attractive entry point for additional investment in the future.
Image: Bigstock
Vistra Rises 41.3% in Three Months: Should You Buy the Stock?
Key Takeaways
Shares of Vistra Corp. (VST - Free Report) have rallied 41.3% in the past three months compared with its Zacks Utility- Electric Power industry’s growth of 3.5%, courtesy of its strong retail and commercial operations.
The company benefits from strong demand for its services in both the Texas and Midwest and Northeast markets. Vistra is well-positioned to benefit from President Trump’s executive order aimed at quadrupling the U.S. nuclear energy production by 2050. The directive calls for expedited licensing, streamlined regulatory processes and substantial federal investment in nuclear infrastructure. These initiatives are closely aligned with Vistra’s growth strategy.
Vistra has outperformed the Zacks Utilities sector and the S&P 500 in the past six months.
Price Performance (Three months)
Image Source: Zacks Investment Research
Another utility, NextEra Energy (NEE - Free Report) , also produces a substantial volume of clean energy from its generation assets. NextEra Energy’s shares have gained 0.3% in the last three months.
Vistra shares are trading above the 50-day and 200-day simple moving averages, indicating a bullish trend.
VST’s 50 and 200 SMA
Image Source: Zacks Investment Research
Should you consider adding VST to your portfolio only based on positive price movements? Let’s delve deeper and find out the factors that can help investors decide whether it is a good entry point to add VST stock to their portfolio.
Factors Acting as a Tailwind for Vistra Stock
The demand for clean electricity is rising across Vistra’s service regions, driven by the rapid growth of AI-powered data centers and increasing electrification of oil field operations, particularly in the Permian Basin. Vistra’s ability to generate large volumes of low- and zero-emission electricity from a diverse mix of sources, including solar, nuclear, natural gas and other alternatives, has been a key driver of its strong performance.
The company continues to benefit from a growing residential customer base and a robust hedging strategy that brings clarity to its financial outlook. As of Feb. 24, 2025, Vistra had fully hedged its expected output for the current year and secured 80% of its projected production for 2026. This proactive risk management approach strengthens financial stability and shields the company from market volatility.
Vistra is also well-positioned to expand and modernize its nuclear operations with increased efficiency and cost control. Thanks to a recent executive order and streamlined Nuclear Regulatory Commission approval timelines, nuclear projects that once faced prolonged delays can now advance more rapidly, giving Vistra a distinct edge in delivering reliable, carbon-free power.
With a total generation capacity of 41,000 MW spanning natural gas, nuclear, coal, solar, and battery storage, Vistra is strategically aligned to support rising energy demand from both commercial and industrial sectors. Its strong asset base and presence in fast-growing power markets uniquely position the company to capitalize on long-term growth opportunities and play a leading role in the ongoing clean energy transition.
Mixed Movement in Earnings Estimates for VST
The Zacks Consensus Estimate for VST’s 2025 earnings per share suggests a year-over-year decline, while 2026 earnings per share are showing improvement on a year-over-year basis.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Duke Energy Corporation’s (DUK - Free Report) 2025 and 2026 earnings per share suggests year-over-year growth of 7.12% and 6.08%, respectively. Like Vistra, Duke Energy also produces clean energy from its strong nuclear fleet.
Vistra Stock Trading at a Premium
Vistra is currently trading at a premium valuation compared to its industry, with its forward 12-month price-to-earnings (P/E) ratio at 24.03X. The industry is currently trading at 15.17X.
Image Source: Zacks Investment Research
Vistra is currently trading at a premium compared with Duke Energy. The current P/E- F12M ratio of DUK is 17.91X.
VST Stock’s ROE Higher Than its Industry
VST’s trailing 12-month return on equity (ROE) is 87.33%, way ahead of its industry average of 10.13%. ROE, a profitability measure, reflects how effectively a company is utilizing its shareholders’ funds in its operations to generate income.
Image Source: Zacks Investment Research
NextEra Energy’s ROE is substantially lower than Vistra and is currently pegged at 12.06%. NEE is also utilizing its funds better than its peers in the industry.
Vistra Raising Shareholders’ Value
Vistra continues to increase shareholders' value through its share repurchase program and dividend payments.
The company bought back shares worth over $5.2 billion from November 2021 through May 2, 2025. VST’s management expects to continue with the buyback of shares and aims to repurchase shares worth $1.5 billion through year-end 2026.
VST’s board of directors has also approved a quarterly dividend of 22.50 cents for the second quarter of 2025 and is targeting an annual dividend payment of $300 million. VST has raised its dividend 15 times in the past five years. Check VST’s dividend history here.
Summing Up
Vistra's comprehensive hedging program and planned development of clean energy projects will allow it to move toward more clean electricity generation. The new executive order will assist the company in developing new nuclear projects with shortened approval timelines.
Vistra stands to gain from the rising demand for clean electricity within its service region. Its strong hedging strategy significantly improves the visibility of its future earnings by safeguarding it from price fluctuation in future generation volumes.
Given that VST shares are currently trading at a premium, existing investors may find it wise to hold their positions in this Zacks Rank #3 (Hold) stock, benefit from dividend payouts, and consider identifying a more attractive entry point for additional investment in the future.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.