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Vistra Corp. (VST) Falls More Steeply Than Broader Market: What Investors Need to Know

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Vistra Corp. (VST - Free Report) ended the recent trading session at $204.24, demonstrating a -6.28% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.55%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.95%.

Coming into today, shares of the company had gained 14.65% in the past month. In that same time, the Utilities sector lost 1.16%, while the S&P 500 gained 3.64%.

The upcoming earnings release of Vistra Corp. will be of great interest to investors. In that report, analysts expect Vistra Corp. to post earnings of $1.97 per share. This would mark a year-over-year decline of 62.48%. Meanwhile, the latest consensus estimate predicts the revenue to be $7.34 billion, indicating a 16.71% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.3 per share and revenue of $21.59 billion, which would represent changes of -10% and +25.33%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Vistra Corp. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Vistra Corp. holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Vistra Corp. is holding a Forward P/E ratio of 34.59. Its industry sports an average Forward P/E of 18.13, so one might conclude that Vistra Corp. is trading at a premium comparatively.

We can also see that VST currently has a PEG ratio of 3.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 2.7 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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