Can VST Gain From Surging Electricity Demand in Its Service Areas?

Vistra Corp. VST is poised to capitalize on rising electricity demand across its core service areas. This demand growth is fueled by the electrification of the oil and gas industry, especially in the Permian Basin, new LNG infrastructure, large-scale AI-powered data centers and the ongoing reshoring of industrial operations in the United States.The accelerating shift toward clean energy is a significant tailwind for Vistra’s dispatchable generation capabilities, its expansive retail footprint and ability to support grid reliability. Since 2018, Vistra has added 7,922 megawatts (MW) of zero-carbon generation, with additional clean energy projects currently in development to meet growing demand.As a vertically integrated power company, Vistra can capture value across both wholesale and retail markets. Its robust operations, consistent retail performance and stable earnings across economic cycles reflect the strength of this integrated model. Currently, Vistra serves nearly 5 million residential, commercial and industrial customers and operates approximately 41,000 MW of generation capacity across natural gas, coal, nuclear, solar and battery storage.VST’s diversified and flexible asset portfolio enhances its resilience in the face of evolving regulatory and environmental requirements. The regulatory extension of the Perry Nuclear Power Plant’s life to 2046, along with solid liquidity and rising output, reinforces Vistra’s ability to thrive amid grid transformation and expanding regional electricity demand.How Utilities are Gaining From Surging DemandUtilities are benefiting from soaring electricity demand driven by data center expansion and Permian Basin electrification. These trends are boosting load growth, enabling utilities to invest in grid infrastructure, expand generation capacity and secure long-term revenues through industrial and high-load customers.American Electric Power AEP and CenterPoint Energy CNP are well-positioned to benefit from data center growth and Permian Basin electrification. AEP is expanding transmission infrastructure to support rising industrial and data center loads, while CenterPoint is enhancing grid capacity in West Texas to meet the increasing power needs of oil and gas operations, driving long-term revenues and system modernization.VST’s Sales Estimates Move UpThe Zacks Consensus Estimate for Vistra’s 2025 and 2026 sales indicates year-over-year increases of 28.91% and 4.53%, respectively. Image Source: Zacks Investment Research VST Stock’s ROE is Higher Than Its IndustryVST’s trailing 12-month return on equity (“ROE”) is 87.33%, way ahead of its industry average of 10.41%. ROE, a profitability measure, reflects how effectively a company is utilizing its shareholders’ funds in operations to generate income. Image Source: Zacks Investment Research VST’s Price PerformanceShares of Vistra have surged 80.5% in the past three months compared with the Zacks Utility- Electric Power industry’s growth of 1.6%.Price Performance (3 Months) 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 American Electric Power Company, Inc. (AEP): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): 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