Vistra Corp. (VST), founded in 1882 and based in Irving, Texas, has grown into one of the leading retail energy producers in the U.S. With a capacity of around 41 gigawatts, Vistra's diverse portfolio spans nuclear, natural gas (NGX24), coal, and solar power generation.
The company also hosts one of the world’s largest utility-scale battery projects, showcasing its commitment to energy innovation. With a market cap of $45.6 billion, Vistra continues to play a pivotal role in shaping the future of energy production in the country.
The firm is gearing up to release its fiscal 2024 Q3 earnings results on Thursday, Nov. 7. Ahead of the event, analysts expect Vistra’s profit to be $0.69 per share, down 44% from $1.25 per share in the year-ago quarter. The company missed Wall Street’s EPS estimates in each of the last four quarters. Vistra’s profit of $0.90 per share for the last reported quarter missed the consensus estimates by 43.4%.
Analysts project the company to report an EPS of $4.70 in fiscal 2024, up 30.9% from $3.59 in fiscal year 2023. Moreover, its fiscal 2025 EPS is projected to surge 21.9% annually to $5.73.
Shares of the utility firm have climbed 304.6% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 35.9% gains and the Utilities Select Sector SPDR Fund’s (XLU) 38.4% returns during the same period.
Vistra has been outpacing the broader market thanks to its strategic focus on nuclear power and the booming demand from AI-driven data centers. As AI technology accelerates, Barclays predicts that data centers could consume over 9% of total power demand by 2030, a massive leap from current levels. With its unique mix of gas and nuclear power, Vistra is perfectly positioned to capitalize on this trend.
After posting strong Q2 earnings results on Aug. 8, shares of Vistra rose 6.9%, driven by a 20.6% annual revenue increase and a solid operating adjusted EBITDA of $1.4 billion. Despite minor earnings shortfalls, Vistra's ability to leverage the AI revolution is fueling investor confidence and propelling the stock forward.
The consensus opinion on VST is “Strong Buy” overall. Out of 12 analysts covering the stock, 11 suggest a “Strong Buy,” and the remaining one has a “Moderate Buy” rating.
Furthermore, the mean price target of $149.42 represents a potential upside of 13.9% from VST’s current market prices.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
