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Vistra Corp. (VST) Stock Drops Despite Market Gains: Important Facts to Note

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The most recent trading session ended with Vistra Corp. (VST - Free Report) standing at $169.17, reflecting a -0.79% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 1.83%. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 2.45%.

Heading into today, shares of the company had gained 21.99% over the past month, outpacing the Utilities sector's loss of 6.06% and the S&P 500's loss of 3.31% in that time.

The investment community will be closely monitoring the performance of Vistra Corp. in its forthcoming earnings report. In that report, analysts expect Vistra Corp. to post earnings of $1.07 per share. This would mark year-over-year growth of 322.92%. Simultaneously, our latest consensus estimate expects the revenue to be $4.83 billion, showing a 56.78% escalation compared to the year-ago quarter.

Investors should also note any recent changes to analyst estimates for Vistra Corp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% decrease. Right now, Vistra Corp. possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Vistra Corp. is at present trading with a Forward P/E ratio of 28.12. This signifies a premium in comparison to the average Forward P/E of 16.13 for its industry.

Also, we should mention that VST has a PEG ratio of 1.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power was holding an average PEG ratio of 2.52 at yesterday's closing price.

The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 138, positioning it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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