Vistra Corp. (VST) Attracts Investor Attention Amidst Changing Earnings Estimates

Vistra Corp. (VST) has seen its stock return -1.5% over the past month, compared to the Zacks S&P 500 composite's +1.3% change. The company's earnings per share for the current quarter is expected to be $1.97, a year-over-year change of -62.5%. For the current fiscal year, the consensus earnings estimate is $6.3, a change of -10% from the prior year. The Zacks Rank for Vistra is #3 (Hold) based on earnings estimate revisions.

Vistra Corp. (VST), an integrated retail electricity and power generation company in the United States, has seen its stock return -1.5% over the past month, compared to the Zacks S&P 500 composite's +1.3% change. The company's earnings per share (EPS) for the current quarter is expected to be $1.97, a year-over-year change of -62.5%. For the current fiscal year, the consensus earnings estimate is $6.3, representing a change of -10% from the prior year. The Zacks Rank for Vistra is #3 (Hold) based on earnings estimate revisions [1].

Earnings Estimates and Zacks Rank

The Zacks Rank, a proprietary stock rating tool, evaluates a company's earnings estimate revisions and other factors to predict near-term price performance. Vistra's recent Zacks Rank of #3 (Hold) suggests that the stock may perform in line with the broader market in the near term. Over the past 30 days, the consensus earnings estimate for the current quarter has changed by -16.2%, while the estimate for the current fiscal year has changed by -1.9% [1].

Revenue Growth and Valuation

Vistra's revenue growth prospects are positive. The consensus sales estimate for the current quarter is $7.34 billion, indicating a year-over-year change of +16.7%. For the current and next fiscal years, the estimates are $21.59 billion and $24.93 billion, respectively, showing changes of +25.3% and +15.5% [1].

In terms of valuation, Vistra is graded D by the Zacks Value Style Score, indicating that it is trading at a premium to its peers [1]. The company's price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) multiples are all above their historical averages, suggesting that the stock may be overvalued relative to its peers.

Recent Performance and Outlook

Vistra's stock has surged by 53.5% since Jim Cramer praised the firm in October 2024, driven by strong earnings and strategic acquisitions [2]. The company's recent third-quarter earnings report showcased a net income rise to $1.84 billion, up from $502 million the previous year, and a revenue of $6.29 billion, exceeding expectations [1].

Analysts have adjusted their price targets upward, reflecting strong market confidence in Vistra's trajectory. The company's strategic investments in new generation projects and capital return strategies have bolstered investor sentiment for future growth [2].

Conclusion

Vistra Corp.'s stock has seen mixed performance over the past month, with earnings per share expected to decline significantly in the current quarter. However, the company's strong revenue growth prospects and strategic initiatives have driven analyst optimism. The Zacks Rank suggests that the stock may perform in line with the broader market in the near term. Investors should closely monitor Vistra's earnings reports and market sentiment to make informed decisions.

References:
[1] https://finance.yahoo.com/news/vistra-corp-vst-attracting-investor-130005507.html
[2] https://www.ainvest.com/news/vistra-corp-vst-surges-53-5-jim-cramer-endorsement-2508/