Irving, Texas-based Vistra Corp. (VST) operates as an integrated retail electricity and power generation company. With a market cap of $31.7 billion, this leader in energy transformation and expansion provides essential power resources to customers, businesses, and communities from California to Maine. The company is also involved in electricity generation, wholesale energy purchases and sales, commodity risk management, fuel production, and fuel logistics management activities. 

Companies worth $10 billion or more are generally described as “large-cap stocks,” and VST perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the independent utilities power producers industry. Vistra’s diversified energy portfolio, spanning nuclear, coal, natural gas, and solar, positions the company for resilience and stability. The strategic acquisition of Energy Harbor boosts capacity to 41 gigawatts, enhancing market leadership.

Despite its notable strength, VST has slipped 15% from its 52-week high of $107.24, achieved on May 28. Over the past three months, VST stock has gained 4.1%, underperforming the Utilities Select Sector SPDR Fund (XLU) 13.4% gains during the same time frame.

However, VST looks more appealing in the longer term, as its shares rose 136.7% on a YTD basis and climbed 172.3% over the past 52 weeks, significantly outperforming XLU’s YTD gains of 23.9% and 21.9% returns over the last year.

To reinforce the bullish trend, VST has consistently traded above its 200-day moving average over the past year and is currently positioned above its 50-day moving average in a couple of trading sessions.

Vistra's strong performance can be attributed to a license extension for one of its plants and rising power market prices. The utility company partnered with Sunrun Inc. (RUN) to launch the TXU Energy & Sunrun Battery Rewards program in Texas, allowing homeowners with solar panels and batteries to contribute stored energy to the grid during peak demand. The company’s persistent innovation in energy efficiency, like the recent completion of the DeCordova Energy Storage Facility, which provides 260 megawatts of emission-free power to the grid, further bolsters its performance.

On Sep. 13, VST shares closed up more than 6% after Jeffries named the stock its top pick in the power sector with a “Buy” recommendation and a price target of $99.

On Aug. 8, VST shares closed up more than 6% after reporting its Q2 earnings results. Its revenue stood at $3.8 billion, up 20.6% year over year. Plus, its full-year adjusted EBITDA is expected to be between $4.5 billion and $5 billion.

In the competitive arena of independent utility power producers, Talen Energy Corporation (TLN) has taken the lead over VST, showing resilience with a 167.2% uptick on a YTD basis and solid 211.5% gains over the past 52 weeks.

Wall Street analysts are highly bullish on VST’s prospects. The stock has a consensus “Strong Buy” rating from the 10 analysts covering it, and the mean price target of $115 suggests a potential upside of 26.1% from current price levels.

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On the date of publication, Neha Panjwani 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.