Vistra

VST

Market cap $60.6B

Vistra is a leading U.S. power company with a diversified generation fleet and strong operational performance, despite recent stock correction and Q3 earnings miss. VST's adjusted EBITDA is up 17% year-over-year, and management expects continued growth in cash generation, with guidance for higher EBITDA and free cash flow in 2025 and 2026. The recent Lotus Infrastructure Partners acquisition adds 2,600 MW capacity, positioning VST to serve rising data center demand and expand nuclear power operations.

The energy sector is witnessing a shift in how investors view Independent Power Producers (IPPs). Historically, companies that generated and sold electricity on the open market were seen as volatile, risky investments tied strictly to the ups and downs of commodity prices.

Vistra remains a Hold as the stock's upside is balanced by significant risks and a valuation that already prices in strong execution. VST's strengths include a diversified power generation portfolio, recent acquisitions, and exposure to rising U.S. electricity demand, but operational setbacks and high debt add risk. Current valuation reflects optimism, leaving little room for error; any project missteps or regulatory changes could drive the stock lower.

Recently, Zacks.com users have been paying close attention to Vistra (VST). This makes it worthwhile to examine what the stock has in store.

VST's rising earnings outlook, strong ROE and faster sales growth sharpen its edge in a head-to-head comparison with SO.

Vistra generates electricity and sells it on the open wholesale market. As electricity demand has skyrocketed, Vistra's revenue and profits have followed suit.

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VST stock gains 29.9% year to date as clean energy demand, hedging strength and portfolio expansion fuel its momentum.

Vistra Energy is a leading electricity provider in the U.S., serving over 5 million customers and benefiting from its merchant power model. The company has expanded its capacity through acquisitions and new projects, positioning it to meet rising energy demand.