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Vistra Stock Outperforms Industry in a Year: How to Play?
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Key Takeaways
Vistra's shares have soared 69.2% in a year, outpacing the Utility-Electric Power industry's 14.6%.
VST's integrated power model, hedging strategy, and clean energy assets drive stable earnings growth.
The company boosts shareholder value with $5.4B in buybacks and steady dividend increases.
Shares of Vistra Corp. ((VST - Free Report) ) have rallied 69.2% in the past year compared with the Zacks Utility- Electric Power industry’s growth of 14.6%, courtesy of its strong retail and commercial operations. Vistra has outperformed the Zacks Utilities sector and the S&P 500 in the same time period.
Vistra is strengthening its business through strategic investments in retail, renewable and energy storage assets, supporting its transition toward a lower-carbon, more sustainable future. Strong residential and commercial performance across Texas, the Midwest and the Northeast, along with high nuclear fleet availability, has enabled the company to effectively meet rising power demand and deliver lasting value to stakeholders.
Price Performance (One year)
Image Source: Zacks Investment Research
Another firm, Constellation Energy Corporation ((CEG - Free Report) ), also produces a substantial volume of clean energy from its nuclear generation assets. CEG’s shares have gained 46.1% in the past year.
Vistra is currently trading above its 50-day and 200-day simple moving averages (SMAs), signaling a bullish trend.
The 50-day and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend of the stocks.
VST 50 & 200 Day SMAs
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.
Vistra’s Stock Surges on Multiple Growth Tailwinds
Vistra’s fully integrated model combines power generation, retail electricity sales and energy storage with advanced risk management. This structure allows the company to balance supply and demand effectively, hedge against commodity price swings and deliver stable cash flows and predictable earnings.
Vistra’s balanced mix of natural gas, nuclear, coal and growing renewable and battery assets provides a solid base for sustainable growth, positioning the company to thrive amid the evolving U.S. energy transition. Vistra’s decision to acquire seven modern natural gas generation facilities from Lotus Infrastructure Partners, with a capacity of 2,600 megawatts (“MW”), will further boost Vistra’s clean energy generation capabilities. As of Dec 31, 2024, Vistra’s total generation capacity stood at 40,657 MW, and nearly 59% of it comes from its natural gas generating assets. The new acquisitions will further enhance its clean power generation capabilities.
Rising demand for clean electricity across Vistra’s markets, fueled by the expansion of AI-driven data centers and growing electrification in the Permian Basin, is creating new opportunities for the company. Vistra’s capacity to supply substantial low- and zero-emission power from solar, nuclear, natural gas, and other sources has been a major contributor to its strong performance.
Vistra’s strong hedging strategy significantly improves the visibility of its future earnings. As of Aug. 1, 2025, the company has fully hedged its projected production for the year and covered 95% of its expected output for 2026. This proactive approach enhances financial stability and reduces exposure to market fluctuations.
VST’s Earnings Estimates are Moving Up
The Zacks Consensus Estimate for VST’s 2025 and 2026 earnings per share has moved up by 4.49% and 2.06%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Another utility with a large volume of clean power generation capacity is NextEra Energy ((NEE - Free Report) ). NEE’s Zacks Consensus Estimate for 2025 and 2026 has remained unchanged for the past 60 days.
VST’s Earnings Surprise History
Vistra has reported positive earnings surprise in three out of the last four reported quarters and missed estimates once. This resulted in an average earnings surprise of 69.75%.
Image Source: Zacks Investment Research
NextEra Energy reported earnings surprise in all the last four reported quarters, resulting in an average earnings surprise of 3.51%.
VST Stock Returns Higher Than Its Industry
Return on equity (ROE), a profitability measure, reflects how effectively a company is utilizing its shareholders’ funds in its operations to generate income. VST’s trailing 12-month ROE is 108.41%, way ahead of its industry average of 10.35%.
Image Source: Zacks Investment Research
Constellation Energy’s current ROE (ttm) is 21.61%, better than its industry.
Vistra Increases Value of Shareholders
Vistra continues to increase its shareholders' value through its share repurchase program and dividend payments.
The company bought back shares worth over $5.4 billion from November 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.
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 26.42X. The industry is currently trading at 15.56X.
Image Source: Zacks Investment Research
Wrapping Up
Vistra’s comprehensive hedging program, rising earnings estimates, ROE better than the industry and solid capital return program make the stock attractive. Vistra stands to gain from the rising demand for clean electricity within its service region.
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 and consider identifying a more attractive entry point for additional investment in the future.
Image: Bigstock
Vistra Stock Outperforms Industry in a Year: How to Play?
Key Takeaways
Shares of Vistra Corp. ((VST - Free Report) ) have rallied 69.2% in the past year compared with the Zacks Utility- Electric Power industry’s growth of 14.6%, courtesy of its strong retail and commercial operations. Vistra has outperformed the Zacks Utilities sector and the S&P 500 in the same time period.
Vistra is strengthening its business through strategic investments in retail, renewable and energy storage assets, supporting its transition toward a lower-carbon, more sustainable future. Strong residential and commercial performance across Texas, the Midwest and the Northeast, along with high nuclear fleet availability, has enabled the company to effectively meet rising power demand and deliver lasting value to stakeholders.
Price Performance (One year)
Image Source: Zacks Investment Research
Another firm, Constellation Energy Corporation ((CEG - Free Report) ), also produces a substantial volume of clean energy from its nuclear generation assets. CEG’s shares have gained 46.1% in the past year.
Vistra is currently trading above its 50-day and 200-day simple moving averages (SMAs), signaling a bullish trend.
The 50-day and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend of the stocks.
VST 50 & 200 Day SMAs
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.
Vistra’s Stock Surges on Multiple Growth Tailwinds
Vistra’s fully integrated model combines power generation, retail electricity sales and energy storage with advanced risk management. This structure allows the company to balance supply and demand effectively, hedge against commodity price swings and deliver stable cash flows and predictable earnings.
Vistra’s balanced mix of natural gas, nuclear, coal and growing renewable and battery assets provides a solid base for sustainable growth, positioning the company to thrive amid the evolving U.S. energy transition. Vistra’s decision to acquire seven modern natural gas generation facilities from Lotus Infrastructure Partners, with a capacity of 2,600 megawatts (“MW”), will further boost Vistra’s clean energy generation capabilities. As of Dec 31, 2024, Vistra’s total generation capacity stood at 40,657 MW, and nearly 59% of it comes from its natural gas generating assets. The new acquisitions will further enhance its clean power generation capabilities.
Rising demand for clean electricity across Vistra’s markets, fueled by the expansion of AI-driven data centers and growing electrification in the Permian Basin, is creating new opportunities for the company. Vistra’s capacity to supply substantial low- and zero-emission power from solar, nuclear, natural gas, and other sources has been a major contributor to its strong performance.
Vistra’s strong hedging strategy significantly improves the visibility of its future earnings. As of Aug. 1, 2025, the company has fully hedged its projected production for the year and covered 95% of its expected output for 2026. This proactive approach enhances financial stability and reduces exposure to market fluctuations.
VST’s Earnings Estimates are Moving Up
The Zacks Consensus Estimate for VST’s 2025 and 2026 earnings per share has moved up by 4.49% and 2.06%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Another utility with a large volume of clean power generation capacity is NextEra Energy ((NEE - Free Report) ). NEE’s Zacks Consensus Estimate for 2025 and 2026 has remained unchanged for the past 60 days.
VST’s Earnings Surprise History
Vistra has reported positive earnings surprise in three out of the last four reported quarters and missed estimates once. This resulted in an average earnings surprise of 69.75%.
Image Source: Zacks Investment Research
NextEra Energy reported earnings surprise in all the last four reported quarters, resulting in an average earnings surprise of 3.51%.
VST Stock Returns Higher Than Its Industry
Return on equity (ROE), a profitability measure, reflects how effectively a company is utilizing its shareholders’ funds in its operations to generate income. VST’s trailing 12-month ROE is 108.41%, way ahead of its industry average of 10.35%.
Image Source: Zacks Investment Research
Constellation Energy’s current ROE (ttm) is 21.61%, better than its industry.
Vistra Increases Value of Shareholders
Vistra continues to increase its shareholders' value through its share repurchase program and dividend payments.
The company bought back shares worth over $5.4 billion from November 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.
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 26.42X. The industry is currently trading at 15.56X.
Image Source: Zacks Investment Research
Wrapping Up
Vistra’s comprehensive hedging program, rising earnings estimates, ROE better than the industry and solid capital return program make the stock attractive. Vistra stands to gain from the rising demand for clean electricity within its service region.
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 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.