Shares of Vistra (VST +2.23%), the Texas-based power company, are still up more than 17% year to date but have fallen considerably from their 52-week high of $219. Should you buy the stock while it's below $170? Let's evaluate what's happening with Vistra.
NYSE: VST
Key Data Points
Positioned well for the AI boom
Vistra is one of the strongest publicly traded utility companies of the past few years. It's benefited from pricing volatility, increasing demand for electricity, and its solid growth in nuclear.
Image source: Getty Images.
Much has been discussed regarding the immense energy needs of AI data centers. Vistra has nuclear assets that are well-positioned to meet this emerging demand. Vistra is focused on expanding its nuclear portfolio, as well as its clean energy subsidiary, Vistra Zero.
Vistra's financials remain strong
The company's latest third-quarter earnings report fell short of expectations, but its balance sheet is solid. Revenue was down, but the company's adjusted EBITDA grew 9.9% year over year. Much of the earnings miss can be attributed to higher operating costs resulting from macroeconomic factors, including higher fuel costs. Vistra still achieved net income of $652 million in the third quarter of 2025 alone.
Vistra's stock is priced below $170, but it's still trading at a premium with a price-to-earnings ratio of 58. That's well above the industry average. This may be attributed to hype surrounding increasing energy demands and Vistra's ability to increase prices. Unlike regulated utility companies, Vistra can fluctuate its prices as it often operates as a power wholesaler.
The future of Vistra burns cleaner and brighter
With a solid dividend and compelling growth story behind its commitment to clean energy and supplying data centers, Vistra is a rare combination for long-term investors. The need for nuclear is expected to grow by 10% in 2026. The world is hungry for energy, and Vistra is ready to capitalize.
