Should You Buy Vistra Stock (VST) Before It Hits $200?
Shares of energy company Vistra (NYSE: VST) were recently trading around $178 per share. If you're familiar with its performance in recent years -- it has averaged annual gains of 95% over the past three years -- you may be wondering if this is a good time to buy into it. You may be thinking you should take action before it hits $200.I'd advise you to not focus on any stock price's absolute value, though. It's important to understand that a $10 stock can be wildly overvalued and likely to pull back, while a $500 stock can be undervalued and on its way to $1,000. To get much meaning from a stock's price, you need to relate it to other measures, such as earnings.When you do so, you'll see that Vistra seems rather overvalued at recent levels. Its recent forward-looking price-to-earnings (P/E) ratio of 18.7, for example, is well above its five-year average of 12.2. And its recent price-to-sales ratio of 3.6 is way above its five-year average of 1.1.Continue readingWeiter zum vollständigen Artikel bei MotleyFool
Quelle: MotleyFool