Vistra Corp. (VST) Dips More Than Broader Market: What You Should Know

Vistra Corp. (VST) closed the latest trading day at $191.11, indicating a -0.41% change from the previous session’s end. The stock’s performance was behind the S&P 500’s daily loss of 0.29%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.5%.

Coming into today, shares of the company had gained 33.15% in the past month. In that same time, the Utilities sector lost 1.8%, while the S&P 500 gained 2.52%.

The investment community will be paying close attention to the earnings performance of Vistra Corp. in its upcoming release. The company’s earnings per share (EPS) are projected to be $1.07, reflecting a 322.92% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.32 billion, up 40.26% from the prior-year quarter.

Any recent changes to analyst estimates for Vistra Corp. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.09% decrease. Right now, Vistra Corp. possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Vistra Corp. is holding a Forward P/E ratio of 31.65. This valuation marks a premium compared to its industry’s average Forward P/E of 16.6.

We can additionally observe that VST currently boasts a PEG ratio of 1.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. Utility – Electric Power stocks are, on average, holding a PEG ratio of 2.61 based on yesterday’s closing prices.

The Utility – Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 38% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Story Continues