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Can Vistra Benefit From the Clean Energy Transition & Net-Zero Goal?
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Key Takeaways
VST plans to achieve net-zero emissions by 2050 through its clean energy initiative.
VST has retired 15.1 GW of fossil fuel assets and added 7.9 GW of zero-carbon capacity since 2018.
VST shares rallied 38.7% in three months, trading at a premium 25.91X forward P/E.
Vistra Corp. (VST - Free Report) is strategically positioned to benefit from the ongoing clean energy transition, leveraging its diversified generation portfolio and planned investments in zero-carbon resources. The company is accelerating the expansion of its renewables and energy storage projects under its Vistra Zero initiative, with a goal of achieving net-zero emissions by 2050.
Vistra is actively replacing its aging fossil-fuel fleet with low-emission, long-duration assets that align with the U.S. clean energy trajectory. This proactive transition not only reduces long-term compliance risks but also positions Vistra to capture growth from new market opportunities and incentives under legislation like the Inflation Reduction Act.
Vistra has retired more than 15,100 megawatts (MW) of fossil fuel-based generation since 2010 and aims to lower further by 20,000 MW by 2027. VST has brought online 7,922 MW of zero-carbon generation since 2018 and more clean projects are under development.
Vistra’s growth investments through 2026 are heavily focused on solar and battery developments, while also repowering select gas assets to enhance efficiency. This shift not only improves its emissions profile but also creates a more resilient earnings stream, less exposed to fuel price volatility and regulatory risk.
Over the long term, Vistra’s shift toward clean energy enhances both its earnings capacity and valuation potential. As demand for low-emission and reliable power rises, driven by electrification, environmental regulations and corporate decarbonization, Vistra’s diversified and strategically located asset base will play a key role in the energy transition.
Other Utilities Are Also Aiming for Net-Zero Emissions
A transition is evident, with utilities aiming for net-zero emissions in electricity generation. Public Service Enterprise Group (PEG - Free Report) is aiming for net-zero by 2030 and Dominion Energy (D - Free Report) targets net-zero carbon emissions from its electric generation by 2050.
Public Service Enterprise is enhancing its renewable generation portfolio. PEG has also been taking initiatives to reduce carbon emissions to reap the benefits of the expanding clean energy market.
Dominion Energy intends to make zero and low-emitting resources accountable for 99% of its electric generation by 2035. The company owns four nuclear power stations, which generate nearly 40% of its total production.
Positive Movement in VST’s Earnings Estimate
The Zacks Consensus Estimate for Vistra’s 2025 and 2026 earnings per share indicates an increase of 2.47% and 3.36%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Vistra Stock Trading at a Premium
Vistra is currently trading at a premium valuation compared with the industry, with its forward 12-month price-to-earnings ratio of 25.91X. The industry is currently trading at 15.06X.
Image Source: Zacks Investment Research
VST’s Price Performance
Shares of Vistra have rallied 38.7% in the past three months compared with the Zacks Utility- Electric Power industry’s growth of 1.2%, courtesy of its strong retail and commercial operations.
Image: Bigstock
Can Vistra Benefit From the Clean Energy Transition & Net-Zero Goal?
Key Takeaways
Vistra Corp. (VST - Free Report) is strategically positioned to benefit from the ongoing clean energy transition, leveraging its diversified generation portfolio and planned investments in zero-carbon resources. The company is accelerating the expansion of its renewables and energy storage projects under its Vistra Zero initiative, with a goal of achieving net-zero emissions by 2050.
Vistra is actively replacing its aging fossil-fuel fleet with low-emission, long-duration assets that align with the U.S. clean energy trajectory. This proactive transition not only reduces long-term compliance risks but also positions Vistra to capture growth from new market opportunities and incentives under legislation like the Inflation Reduction Act.
Vistra has retired more than 15,100 megawatts (MW) of fossil fuel-based generation since 2010 and aims to lower further by 20,000 MW by 2027. VST has brought online 7,922 MW of zero-carbon generation since 2018 and more clean projects are under development.
Vistra’s growth investments through 2026 are heavily focused on solar and battery developments, while also repowering select gas assets to enhance efficiency. This shift not only improves its emissions profile but also creates a more resilient earnings stream, less exposed to fuel price volatility and regulatory risk.
Over the long term, Vistra’s shift toward clean energy enhances both its earnings capacity and valuation potential. As demand for low-emission and reliable power rises, driven by electrification, environmental regulations and corporate decarbonization, Vistra’s diversified and strategically located asset base will play a key role in the energy transition.
Other Utilities Are Also Aiming for Net-Zero Emissions
A transition is evident, with utilities aiming for net-zero emissions in electricity generation. Public Service Enterprise Group (PEG - Free Report) is aiming for net-zero by 2030 and Dominion Energy (D - Free Report) targets net-zero carbon emissions from its electric generation by 2050.
Public Service Enterprise is enhancing its renewable generation portfolio. PEG has also been taking initiatives to reduce carbon emissions to reap the benefits of the expanding clean energy market.
Dominion Energy intends to make zero and low-emitting resources accountable for 99% of its electric generation by 2035. The company owns four nuclear power stations, which generate nearly 40% of its total production.
Positive Movement in VST’s Earnings Estimate
The Zacks Consensus Estimate for Vistra’s 2025 and 2026 earnings per share indicates an increase of 2.47% and 3.36%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Vistra Stock Trading at a Premium
Vistra is currently trading at a premium valuation compared with the industry, with its forward 12-month price-to-earnings ratio of 25.91X. The industry is currently trading at 15.06X.
Image Source: Zacks Investment Research
VST’s Price Performance
Shares of Vistra have rallied 38.7% in the past three months compared with the Zacks Utility- Electric Power industry’s growth of 1.2%, courtesy of its strong retail and commercial operations.
Image Source: Zacks Investment Research
VST’s Zacks Rank
Vistra currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here