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Is Vistra Stock a Buy Now?

The Motley Fool Logo The Motley Fool By Courtney Carlsen
Is Vistra Stock a Buy Now?

Vistra has surged 321% in 2024 as an independent power producer positioned to benefit from AI data center energy demands. The company operates as a merchant power provider across 18 states with a hedged business model providing revenue stability. While the stock trades at a premium valuation (27.4x current earnings), analysts project strong growth with EPS expected to surge 68% in 2026 and 22% in 2027, making it attractive for those bullish on AI infrastructure expansion.

Insights
VST   positive

Vistra is positioned to benefit from growing AI data center energy demands with a diversified merchant power model, secured long-term contracts, and strong projected earnings growth (68% in 2026, 22% in 2027). Despite premium current valuation, forward multiples (17.5x 2026E, 14.8x 2027E) appear more reasonable given growth prospects and the company's strategic acquisitions and partnerships in high-demand regions.