Can Multi-Fuel Generation Act as a Tailwind for VST Stock?

Vistra Corp.’s VST multi-fuel generation portfolio significantly enhances its long-term growth potential. With a balanced mix of natural gas, nuclear, coal, and increasing renewable and battery storage, Vistra is well-positioned to navigate the evolving U.S. energy landscape. This multi-fuel approach allows the company to maintain grid reliability, optimize generation economics and capitalize on regional market dynamics, particularly during periods of fuel price volatility and extreme weather events.As of Dec. 31, 2024, Vistra’s generation capacity was powered by Natural gas, Coal, Nuclear and Renewable sources, which accounted for 59%, 21%, 16% and 4%, respectively, of the total generation capacity of 40,657 megawatts (“MW”). The company’s legacy thermal assets provide dependable baseload capacity, supporting stable cash flow generation, while its expanding renewables and energy storage portfolio aligns with the national transition to cleaner energy. Since 2018, Vistra has added 7,922 MWs of zero-carbon generation, with additional clean energy projects currently in development to meet growing demand. Vistra’s strategic blend not only ensures operational flexibility but also mitigates regulatory risks and enhances resiliency against market disruptions.Vistra’s integrated retail and wholesale platform allows it to capture value across the energy value chain, amplifying margins and enabling long-term capital allocation toward growth initiatives. In sum, Vistra’s multi-fuel strategy positions it as a robust, adaptable and future-ready power company.Utilities Benefit From Multi-Fuel Generation AssetsUtilities benefit from multi-fuel generation assets by enhancing grid reliability, reducing exposure to fuel price volatility and optimizing operational flexibility. This diversified mix enables efficient power delivery, strengthens earnings stability and supports adaptability amid evolving regulatory and market conditions.Peers like Duke Energy DUK and Dominion Energy D benefit from multi-fuel generation portfolios by balancing reliability, cost efficiency and environmental goals. Duke leverages coal, gas, nuclear and renewables to ensure a consistent supply and manage fuel risks. Dominion’s diverse mix supports grid stability and enables smoother integration of clean energy, aligning operations with regulatory trends and long-term decarbonization targets.VST Stock’s Price PerformanceVistra stock has gained 41% in the past six months compared with the Zacks Utility Electric Power industry’s rise of 9.4%. Image Source: Zacks Investment Research VST’s Sales Estimates Going UpThe Zacks Consensus Estimate for VST’s 2025 and 2026 sales indicates year-over-year growth of 29.87% and 3.27% respectively. Image Source: Zacks Investment Research VST Stock’s ROE Is Higher Than Its IndustryVistra’s trailing 12-month return on equity (“ROE”) is 87.33%, way ahead of its industry average of 10.41%. ROE, a profitability measure, indicates how effectively a company is utilizing its shareholders’ funds in operations to generate income. Image Source: Zacks Investment Research VST's Zacks RankVistra currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Duke Energy Corporation (DUK): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis Report Vistra Corp. (VST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks