Vistra Corp. ( VST ) is an energy company with a market capitalization of nearly $43 billion that provides power generation, distribution and transmission solutions. Based in Irving, Texas, the company is also active in wholesale energy trading, commodity risk management, fuel production and fuel logistics management.
Companies with a valuation of 10 billion US dollars or more are typically classified as "large-cap stocks". Vistra fits this description perfectly, as its market capitalization exceeds this threshold. The company's key strengths lie in its diverse energy portfolio, which includes natural gas, nuclear, solar and battery storage, making it a key player in the energy transition. In addition, the company benefits from its strong presence in the highly competitive US electricity markets, serving residential, commercial and industrial customers. With its focus on innovation, operational efficiency and sustainability, Vistra continues to build on its position as a leading energy provider in the industry.
Despite its remarkable strength, this utility has fallen 37.7 percent since its 52-week high of $199.84 on January 23. Moreover, it is down 6.3 percent over the past three months, lagging the 4.4 percent decline in the broader S&P 500 Index ( SPX ) over the same period.
For the year, VST shares are down 9.7 percent, while SPX is down 4.5 percent. Still, over the past 52 weeks, VST has gained 99.2% over the long term, significantly outpacing SPX's 9% gain.
Confirming the recent downtrend, Vistra traded below its 50-day moving average at the end of February. Nevertheless, the price has remained above its 200-day moving average with slight fluctuations since last year.
On February 27, VST shares plunged 12.3% as the company posted weaker than expected fourth quarter earnings of $1.14 per share and revenue of $4 billion. On a positive note, however, sales were up 31.1% year-over-year and the company reported net income of $490 million - a significant improvement over the $184 million loss in the same quarter last year. The sharp decline in Vistra's stock was also influenced by general market sentiment, particularly the 3.5% drop in Nvidia (NVDA) shares after the AI giant warned that its gross profit margins could be lower than expected due to the launch of its new Blackwell chip design.
VST has significantly outperformed its peer, American Electric Power Company, Inc. ( AEP ), with a 29% gain over the past 52 weeks, but trailed AEP's 14.9% return on an annualized basis.
Despite Vistra's recent underperformance, analysts remain very optimistic about its prospects. The stock is rated a "Strong Buy" by the 13 analysts covering it, and the average price target of $183.69 suggests a massive 47.6% upside to the current price.
https://www.barchart.com/story/news/31478365/is-vistra-stock-underperforming-the-s-p-500
