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Here's Why You Should Add Vistra Energy (VST) Stock Now

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Vistra Energy Corp.’s (VST - Free Report) focus to maintain strong balance sheet, growth via strategic acquisitions and steady investments will act as catalysts.

Let’s focus on the factors that make Vistra Energy an appropriate investment option at the moment.

Zacks Rank & VGM Score

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vistra Energy has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.

Price Performance

Due to the current crisis created by COVID-19, shares of most industry players have been declining in recent times. On a long-term basis, shares of the company has outperformed the industry. In the past 12 months, the company’s shares have gained 7.1% compared with the industry’s gain of 6.4%.



Growth Projections

The Zacks Consensus Estimate for 2020 earnings is pegged at 2.35 cents per share on revenues of $12.96 billion. This indicates 13.53% and 9.71% increase of the bottom and the top line, respectively, from the year-ago period’s reported figures.

The company’s long-term (three to five years) earnings growth is pegged at 11.20%.

Dividend Yield & Return on Equity (ROE)

Currently, the company has a dividend yield of 3.31% compared with the Zacks S&P 500 composite’s 2.31%.

ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. ROE for the trailing 12 months for the company is 10.10% compared with the industry’s ROE of 9.80%.

Other Key Picks

Some other top-ranked stocks from the same industry are NorthWestern Corporation (NWE - Free Report) , Pacific Gas & Electric Co. (PCG - Free Report) and Southern Company (SO - Free Report) . NorthWestern sports a Zacks Rank #1, while Pacific Gas & Electric and Southern Company carry a Zacks Rank #2 (Buy).

Long-term earnings growth of Pacific Gas & Electric, NorthWestern and Southern Company is pegged at 2.50%, 3.30% and 4 %, respectively.

Pacific Gas & Electric, NorthWestern and Southern Company have trailing four-quarter positive earnings surprise of 7.35%, 7.62% and 8.13%, on average, respectively.

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