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VST Stock Outperforms Industry in the Past Six Months: How to Play?
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Key Takeaways
VST stock jumped 33.6% in six months, beating the utilities sector and the S&P 500.
Strong demand, clean power mix, and battery investments drive VST's growth momentum.
Vistra boosts shareholder value via $5.4B buybacks, dividends, and ongoing capital plans.
Shares of Vistra Corp. (VST - Free Report) have rallied 33.6% in the past six months compared with the Zacks Utility- Electric Power industry’s growth of 8.2%, 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 (Six Months)
Image Source: Zacks Investment Research
Another utility, Duke Energy (DUK - Free Report) , also produces a substantial volume of clean energy from its nuclear generation assets. Duke Energy’s shares have gained 7.1% in the past six months.
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.
Tailwinds Driving Growth Potential for Vistra Stock
The surge in demand for clean electricity across Vistra’s service areas is being fueled by the rapid expansion of AI-driven data centers and the growing electrification of oilfield operations in the Permian Basin. Vistra’s strength lies in its ability to deliver substantial volumes of low- and zero-emission power through a balanced mix of solar, nuclear, natural gas and other alternative sources, which has been a major contributor to its robust performance.
Vistra plays a crucial role in the U.S. energy transition by utilizing advanced energy storage solutions to strengthen grid reliability and facilitate greater adoption of renewables. Its targeted investments in large-scale battery projects position the company to capitalize on rising market demand.
Vistra is well-positioned for sustained long-term growth, supported by its disciplined capital allocation strategy. The company is channeling substantial investments into expanding its renewable energy and storage portfolio, strengthening its ability to meet rising demand while ensuring grid reliability. For 2025, Vistra plans to invest $2.27 billion, an increase from $1.85 billion in 2024 and $1.61 billion in 2023.
As of Aug. 1, 2025, Vistra had fully hedged its expected output for the current year and secured 95% of its projected production for 2026. This proactive risk management approach strengthens financial stability and shields the company from market volatility.
Vistra operates six nuclear generation units with a combined capacity of 6,448 megawatts, representing about 16% of its total production capacity. The fleet’s high capacity factor provides a strong competitive edge, delivering reliable, zero-carbon power at low variable costs. Well-managed operations enable consistent cash flow, offering a natural hedge against the commodity price volatility that typically impacts fossil fuel generation.
VST Stock’s ROE Higher Than Its Industry
VST’s trailing 12-month return on equity (ROE) is 108.41%, way ahead of its industry average of 10.14%. 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
Mixed Movement in Earnings Estimates for VST
The Zacks Consensus Estimate for VST’s 2025 earnings per share suggests a year-over-year decline of 10%, while 2026 earnings per share are showing a year-over-year improvement of 32.51%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Duke Energy’s 2025 and 2026 earnings per share suggests year-over-year growth of 7.12% and 6.05%, respectively.
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 24.99X. The industry is currently trading at 14.95X.
Image Source: Zacks Investment Research
Another utility, Dominion Energy (D - Free Report) , also generates a substantial volume of clean energy from its generation assets. Dominion is currently trading at P/E F12M of 17.42X, a premium to its industry.
VST’s Sales Estimates Move Up
The Zacks Consensus Estimate for Vistra’s 2025 and 2026 sales indicates year-over-year growth of 25.33% and 15.49%, respectively.
Image Source: Zacks Investment Research
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 $5.4 billion from Nov. 2021 through Aug. 1, 2025. VST’s management expects to continue with the buyback of shares and aims to repurchase shares worth $1.4 billion through year-end 2026.
VST’s board of directors has also approved a quarterly dividend of 22.60 cents for the third quarter of 2025 and is targeting an annual dividend payment of $300 million. VST has raised its dividend 16 times in the past five years. Check VST’s dividend history here.
Dominion Energy raised its dividends only once in the past five years. The current dividend yield of D is 4.36% better than its industry’s yield of 3.12%.
Wrapping Up
Vistra's 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
VST Stock Outperforms Industry in the Past Six Months: How to Play?
Key Takeaways
Shares of Vistra Corp. (VST - Free Report) have rallied 33.6% in the past six months compared with the Zacks Utility- Electric Power industry’s growth of 8.2%, 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 (Six Months)
Image Source: Zacks Investment Research
Another utility, Duke Energy (DUK - Free Report) , also produces a substantial volume of clean energy from its nuclear generation assets. Duke Energy’s shares have gained 7.1% in the past six months.
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.
Tailwinds Driving Growth Potential for Vistra Stock
The surge in demand for clean electricity across Vistra’s service areas is being fueled by the rapid expansion of AI-driven data centers and the growing electrification of oilfield operations in the Permian Basin. Vistra’s strength lies in its ability to deliver substantial volumes of low- and zero-emission power through a balanced mix of solar, nuclear, natural gas and other alternative sources, which has been a major contributor to its robust performance.
Vistra plays a crucial role in the U.S. energy transition by utilizing advanced energy storage solutions to strengthen grid reliability and facilitate greater adoption of renewables. Its targeted investments in large-scale battery projects position the company to capitalize on rising market demand.
Vistra is well-positioned for sustained long-term growth, supported by its disciplined capital allocation strategy. The company is channeling substantial investments into expanding its renewable energy and storage portfolio, strengthening its ability to meet rising demand while ensuring grid reliability. For 2025, Vistra plans to invest $2.27 billion, an increase from $1.85 billion in 2024 and $1.61 billion in 2023.
As of Aug. 1, 2025, Vistra had fully hedged its expected output for the current year and secured 95% of its projected production for 2026. This proactive risk management approach strengthens financial stability and shields the company from market volatility.
Vistra operates six nuclear generation units with a combined capacity of 6,448 megawatts, representing about 16% of its total production capacity. The fleet’s high capacity factor provides a strong competitive edge, delivering reliable, zero-carbon power at low variable costs. Well-managed operations enable consistent cash flow, offering a natural hedge against the commodity price volatility that typically impacts fossil fuel generation.
VST Stock’s ROE Higher Than Its Industry
VST’s trailing 12-month return on equity (ROE) is 108.41%, way ahead of its industry average of 10.14%. 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
Mixed Movement in Earnings Estimates for VST
The Zacks Consensus Estimate for VST’s 2025 earnings per share suggests a year-over-year decline of 10%, while 2026 earnings per share are showing a year-over-year improvement of 32.51%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Duke Energy’s 2025 and 2026 earnings per share suggests year-over-year growth of 7.12% and 6.05%, respectively.
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 24.99X. The industry is currently trading at 14.95X.
Image Source: Zacks Investment Research
Another utility, Dominion Energy (D - Free Report) , also generates a substantial volume of clean energy from its generation assets. Dominion is currently trading at P/E F12M of 17.42X, a premium to its industry.
VST’s Sales Estimates Move Up
The Zacks Consensus Estimate for Vistra’s 2025 and 2026 sales indicates year-over-year growth of 25.33% and 15.49%, respectively.
Image Source: Zacks Investment Research
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 $5.4 billion from Nov. 2021 through Aug. 1, 2025. VST’s management expects to continue with the buyback of shares and aims to repurchase shares worth $1.4 billion through year-end 2026.
VST’s board of directors has also approved a quarterly dividend of 22.60 cents for the third quarter of 2025 and is targeting an annual dividend payment of $300 million. VST has raised its dividend 16 times in the past five years. Check VST’s dividend history here.
Dominion Energy raised its dividends only once in the past five years. The current dividend yield of D is 4.36% better than its industry’s yield of 3.12%.
Wrapping Up
Vistra's 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.