Vistra Corp. (VST) is capturing significant investor attention, driven by its recent market performance. Over the past month, the company’s stock has returned 3.8%, outperforming the S&P 500 composite’s 2.7% gain. It has also surpassed the broader Utility – Electric Power sector, which saw a modest 0.3% increase during the same period.
Analysts’ earnings projections present a mixed but ultimately positive long-term picture. For the current quarter, Vistra is expected to post earnings of $1.97 per share, a significant 62.5% decrease from the same period last year. The forecast for the current fiscal year anticipates earnings of $6.30 per share, down 10% from the previous year. However, a strong rebound is projected for the next fiscal year, with consensus estimates at $8.35 per share, marking a 32.5% increase. These estimates have remained unchanged over the past 30 days.
Supporting the long-term earnings outlook is a positive forecast for revenue. The consensus sales estimate for the current quarter is $7.34 billion, a 16.7% year-over-year increase. For the full current and next fiscal years, revenues are projected to grow by 25.3% and 15.5%, respectively. In its most recently reported quarter, Vistra announced revenues of $4.25 billion and earnings per share (EPS) of $1.01. While revenue missed consensus estimates, EPS surpassed expectations by 3.06%. Over the last four quarters, the company has surpassed consensus EPS estimates twice.
Despite the positive growth prospects, Vistra’s current valuation suggests the stock is trading at a premium compared to its industry peers. This indicates that its future potential may already be reflected in its current price. Reflecting this balanced view of near-term challenges and long-term potential, the stock currently holds a Zacks Rank #3 (Hold), suggesting it is expected to perform in line with the broader market in the near future.
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