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Can VST Stock Rely on Its Nuclear Assets for Long-Term Stability?

Can VST Stock Rely on Its Nuclear Assets for Long-Term Stability?

Yahoo14-07-2025
Vistra Corp. VST is a diversified power producer with a strong presence in competitive electricity markets across the United States. Its balanced portfolio of natural gas, coal, solar and battery storage assets is complemented by a growing clean energy segment, positioning the company to navigate energy transitions while maintaining profitability. Vistra completed the acquisition of Energy Harbor, which added a fleet of nuclear assets to its portfolio that are now central to the long-term growth strategy.Vistra owns and operates six nuclear generation units, having a combined generation capacity of 6,448 megawatts, which accounts for 16% of its total production capacity. High capacity factor across the nuclear fleet offers a significant competitive advantage. These zero-carbon power plants provide reliable output with low variable costs. The company's well-managed nuclear fleet generates consistent cash flow, helping to hedge against commodity price volatility that often affects fossil fuel-based generation.Operational excellence has made Vistra's nuclear unit a cornerstone of its performance. By maintaining high capacity factors and rigorous safety standards, the nuclear fleet enhances the company's earnings stability and supports steady capital returns. Vistra's track record in managing complex assets suggests the nuclear business will continue to deliver durable value.Looking ahead, Vistra is poised to benefit from rising power demand, decarbonization tailwinds and policy incentives for clean energy. Its reliable nuclear unit will allow the company to meet the rising demand in service areas.
Utilities benefit from operating nuclear power plants by securing stable, low-cost and carbon-free baseload power. These plants run at high capacity factors, generate consistent cash flow and support grid reliability, making them valuable assets in an increasingly decarbonized energy landscape.Dominion Energy D and Constellation Energy CEG have both leveraged their nuclear fleets to strengthen earnings and support clean energy goals. Dominion's North Anna and Surry plants provide steady baseload power, enhancing grid reliability. Constellation Energy, the largest U.S. nuclear operator, generates more than 85% of the output from nuclear, giving it a major cost and emissions advantage in competitive wholesale markets.
Vistra'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
The 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
Shares of Vistra have surged 68.7% in the past three months against the Zacks Utility- Electric Power industry's decline of 0.6%.
Image Source: Zacks Investment Research
Vistra currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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