Vistra(US:VST) ZACKS·2025-12-24 17:21Core Insights - Vistra Corp. (VST) is currently trading below its 50-day simple moving average (SMA), indicating a short-term bearish trend, with a stock price of $161.67 as of December 23, 2025, down 26.5% from its 52-week high of $219.82 [1][8] - The company has a total generation capacity of 40,657 MW, with nearly 59% derived from natural gas assets, and a market capitalization of $54.77 billion [2] - Over the past year, VST shares have increased by 12.8%, while the Zacks Utility – Electric Power industry has seen a rally of 18.6% [6] Financial Performance - The Zacks Consensus Estimate for VST's 2025 earnings per share indicates a year-over-year decline of 32.57%, while the estimate for 2026 suggests an increase of 77.39% [16] - VST's trailing 12-month return on equity (ROE) is 64.04%, significantly higher than the industry average of 9.84%, indicating efficient utilization of shareholders' funds [19] - Vistra is trading at a premium valuation with a forward 12-month price-to-earnings (P/E) ratio of 19.47X compared to the industry average of 15.24X [21] Shareholder Value - The company is committed to increasing shareholder value through a share repurchase program and dividend payments, with a quarterly dividend of 22.7 cents approved for Q4 2025 and a target of $300 million in annual dividends [23] - An additional $1 billion has been approved for share repurchases, with $2.2 billion remaining under the current authorization expected to be fully utilized by the end of 2027 [24] Market Position and Growth Potential - Vistra benefits from strong power demand, high nuclear availability, and a diversified generation portfolio, which supports long-term growth [8][10] - The rising demand for clean electricity, driven by AI data centers and electrification in the Permian Basin, presents new opportunities for Vistra [14] - The company has a well-defined capital expenditure plan focused on expanding zero-carbon nuclear output and optimizing its natural gas fleet [15]