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VST Stock Underperforms Industry in the Past 3 Months: How to Play?
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Key Takeaways
Vistra's shares slid after the Moss Landing battery storage facility was taken fully offline.
Vistra sees demand lift from AI data centers and Permian Basin electrification, backed by 44,000 MW capacity.
Vistra hedged 98% of 2026 volumes and returned $600M in Q1 2026, with $1.5B buyback left.
Shares of Vistra Corp. (VST - Free Report) have lost 10.9% in the past six months compared with the Zacks Utility- Electric Power industry’s decline of 5.3% and the Zacks Utilities sector’s drop of 4.9%.
Vistra’s performance was weighed down by an accident at its Moss Landing Battery storage facility and it decided to discontinue operation of the Moss Landing 300 megawatts ( “MW”) storage facility and 100 MW Moss Landing storage facility.
The above setback will offset some of the benefits of Vistra’s improving contract mix, growing demand visibility and strategic acquisitions, which contribute to its long-term growth.
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 declined 7.4% in the past three months.
Should you consider adding VST to your portfolio only based on softness in 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.
Drivers to Watch Amid VST Stock’s Underperformance
Vistra is benefiting from rising demand for clean electricity across its markets, driven by the rapid growth of AI-focused data centers and increasing electrification in Permian Basin oilfield activities. Backed by nearly 44,000 MW of diversified generation capacity across natural gas, nuclear, coal, solar and battery storage, the company remains well positioned to meet growing commercial and industrial power demand while supporting the long-term clean energy transition.
Vistra’s fully integrated business model, which combines power generation, retail electricity operations and energy storage with strong risk management practices, allows it to efficiently balance supply and demand. This integrated structure also helps limit exposure to commodity price fluctuations while supporting stable cash flow generation and more consistent earnings.
The company continues to execute a disciplined capital investment strategy focused on expanding the zero-carbon nuclear portfolio, increasing solar and battery storage capacity and optimizing its natural gas fleet to address peak power demand. Lower interest rates are also expected to enhance Vistra’s financial flexibility by reducing borrowing and interest costs.
At the same time, Vistra is strengthening earnings visibility through extensive hedging and long-term contracts. As of May 1, 2026, the company had hedged nearly 98% of expected generation volumes for 2026, about 89% for 2027 and roughly 65% for 2028. Management expects nearly half of adjusted EBITDA to come from highly stable sources, supported by long-term wholesale contracts and retail electricity operations.
Headwinds for Vistra
Vistra’s performance suffered due to a major incident at its 300-megawatt Moss Landing battery storage facility in California, which caused the facility to be taken fully offline.
The company functions as a merchant power producer that relies heavily on competitive electricity pricing, leaving its ability to capture outsized margins vulnerable to increasing regulatory pressures.
Vistra’s Earnings Estimates Moving North
The Zacks Consensus Estimate for VST’s 2026 and 2027 earnings per share indicates growth of 6.77% and 1.82%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
The same for NEE’s 2026 and 2027 earnings per share indicates growth of 0.25% and 0.23%, respectively, in the past 60 days.
VST Stock Returns Higher Than Its Industry
Return on equity (“ROE”) is a key indicator of a company’s financial performance. It reflects how effectively a corporation uses shareholders' equity to generate profits and is widely regarded as a measure of profitability and operational efficiency.
VST’s trailing 12-month ROE is 105.64%, way ahead of its industry average of 11.08%.
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. Constellation Energy’s ROE is better than its industry.
VST Stock Is Trading at a Discount
Vistra is currently trading at a discounted valuation compared with the industry. Its forward 12-month price-to-earnings (P/E) ratio is 15.55X compared with the industry average of 15.93X.
Image Source: Zacks Investment Research
Constellation Energy is currently trading at a premium valuation compared with the industry. Its forward 12-month price-to-earnings (P/E) ratio is 23.46X compared with the industry average of 23.07X.
Vistra’s Capital Return Program
Vistra continues to increase its shareholders' value through the share repurchase program and dividend payments.
In the first quarter of 2026, the company returned $600 million to its shareholders through dividends and share buybacks. Vistra has $1.5 billion of the share repurchase authorization available, which it expects to complete by year-end 2027. Subject to approval of its board of directors, the company is targeting at least $1 billion in share repurchases and $300 million in common dividends annually. The company has raised dividends 18 times in the past five years. To know about VST’s dividend history, click here.
Rounding Up
Vistra is well positioned to benefit from the growing demand for clean electricity across its service areas. The company’s diversified, multi-fuel generation mix and emphasis on cleaner energy sources align with the evolving energy landscape, while ongoing additions of clean energy assets further strengthen its growth prospects. VST currently has a Zacks Rank #3 (Hold).
Vistra’s higher-than-industry return on equity and rising earnings make the stock appealing. However, the shutdown of the Moss Landing storage facility following the accident, along with the company’s dependence on competitive energy pricing, suggests that new investors should continue monitoring the stock and wait for a more favorable entry point before investing.
View the Zacks #1 Rank List
Image: Bigstock
VST Stock Underperforms Industry in the Past 3 Months: How to Play?
Key Takeaways
Shares of Vistra Corp. (VST - Free Report) have lost 10.9% in the past six months compared with the Zacks Utility- Electric Power industry’s decline of 5.3% and the Zacks Utilities sector’s drop of 4.9%.
Vistra’s performance was weighed down by an accident at its Moss Landing Battery storage facility and it decided to discontinue operation of the Moss Landing 300 megawatts ( “MW”) storage facility and 100 MW Moss Landing storage facility.
The above setback will offset some of the benefits of Vistra’s improving contract mix, growing demand visibility and strategic acquisitions, which contribute to its long-term growth.
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 declined 7.4% in the past three months.
Should you consider adding VST to your portfolio only based on softness in 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.
Drivers to Watch Amid VST Stock’s Underperformance
Vistra is benefiting from rising demand for clean electricity across its markets, driven by the rapid growth of AI-focused data centers and increasing electrification in Permian Basin oilfield activities. Backed by nearly 44,000 MW of diversified generation capacity across natural gas, nuclear, coal, solar and battery storage, the company remains well positioned to meet growing commercial and industrial power demand while supporting the long-term clean energy transition.
Vistra’s fully integrated business model, which combines power generation, retail electricity operations and energy storage with strong risk management practices, allows it to efficiently balance supply and demand. This integrated structure also helps limit exposure to commodity price fluctuations while supporting stable cash flow generation and more consistent earnings.
The company continues to execute a disciplined capital investment strategy focused on expanding the zero-carbon nuclear portfolio, increasing solar and battery storage capacity and optimizing its natural gas fleet to address peak power demand. Lower interest rates are also expected to enhance Vistra’s financial flexibility by reducing borrowing and interest costs.
At the same time, Vistra is strengthening earnings visibility through extensive hedging and long-term contracts. As of May 1, 2026, the company had hedged nearly 98% of expected generation volumes for 2026, about 89% for 2027 and roughly 65% for 2028. Management expects nearly half of adjusted EBITDA to come from highly stable sources, supported by long-term wholesale contracts and retail electricity operations.
Headwinds for Vistra
Vistra’s performance suffered due to a major incident at its 300-megawatt Moss Landing battery storage facility in California, which caused the facility to be taken fully offline.
The company functions as a merchant power producer that relies heavily on competitive electricity pricing, leaving its ability to capture outsized margins vulnerable to increasing regulatory pressures.
Vistra’s Earnings Estimates Moving North
The Zacks Consensus Estimate for VST’s 2026 and 2027 earnings per share indicates growth of 6.77% and 1.82%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
The same for NEE’s 2026 and 2027 earnings per share indicates growth of 0.25% and 0.23%, respectively, in the past 60 days.
VST Stock Returns Higher Than Its Industry
Return on equity (“ROE”) is a key indicator of a company’s financial performance. It reflects how effectively a corporation uses shareholders' equity to generate profits and is widely regarded as a measure of profitability and operational efficiency.
VST’s trailing 12-month ROE is 105.64%, way ahead of its industry average of 11.08%.
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. Constellation Energy’s ROE is better than its industry.
VST Stock Is Trading at a Discount
Vistra is currently trading at a discounted valuation compared with the industry. Its forward 12-month price-to-earnings (P/E) ratio is 15.55X compared with the industry average of 15.93X.
Image Source: Zacks Investment Research
Constellation Energy is currently trading at a premium valuation compared with the industry. Its forward 12-month price-to-earnings (P/E) ratio is 23.46X compared with the industry average of 23.07X.
Vistra’s Capital Return Program
Vistra continues to increase its shareholders' value through the share repurchase program and dividend payments.
In the first quarter of 2026, the company returned $600 million to its shareholders through dividends and share buybacks. Vistra has $1.5 billion of the share repurchase authorization available, which it expects to complete by year-end 2027. Subject to approval of its board of directors, the company is targeting at least $1 billion in share repurchases and $300 million in common dividends annually. The company has raised dividends 18 times in the past five years. To know about VST’s dividend history, click here.
Rounding Up
Vistra is well positioned to benefit from the growing demand for clean electricity across its service areas. The company’s diversified, multi-fuel generation mix and emphasis on cleaner energy sources align with the evolving energy landscape, while ongoing additions of clean energy assets further strengthen its growth prospects. VST currently has a Zacks Rank #3 (Hold).
Vistra’s higher-than-industry return on equity and rising earnings make the stock appealing. However, the shutdown of the Moss Landing storage facility following the accident, along with the company’s dependence on competitive energy pricing, suggests that new investors should continue monitoring the stock and wait for a more favorable entry point before investing.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.