Why Did Vistra Stock Drop Today?
Investment
The Motley Fool

Why Did Vistra Stock Drop Today?

July 1, 2025
01:44 PM
2 min read
AI Enhanced
stocksenergyutilitiesmarket cyclesseasonal analysispolicy

Key Takeaways

Vistra is one nuclear stock that looks almost cheap enough to buy.

Article Overview

Quick insights and key information

Reading Time

2 min read

Estimated completion

Category

investment

Article classification

Published

July 1, 2025

01:44 PM

Source

The Motley Fool

Original publisher

Key Topics
stocksenergyutilitiesmarket cyclesseasonal analysispolicy

Vistra is one nu stock that looks almost cheap enough to buy

S of electric utility and nu power plant operator Vistra (VST -5. 11%) stock tumbled 4. 1% through 12:55 p

ET Tuesday after The Wall Street Journal warned investors that President Trump's plan to kick-start a nu power renaissance in America "won't be easy. " Image source: Getty Images

Vistra and the nu renaissance s of Vistra have rocketed this past year, up more than 120%, on hopes that artificial intelligence's (AI) insatiable demand for electric power will spur demand for more nu power plants to supply that demand -- and on President Trump's mises to support the nu sector, including by instructing the Nu Regulatory Commission to decide on reactor design applications within 18 months of filing

That's an aggressive target, and it may not be realistic

Ordinarily, applications take as long as five years to apve

According to the Journal, it's more ly that nu power supply will grow -- if it does grow at all -- through "extending the operating licenses of existing reactors or trying to restart a handful of recently closed reactors. " In contrast, past efforts to accelerate construction of nu plants, historically, "didn't pan out. " Unless this time is different -- as the saying goes -- spects for Vistra growing dramatically may not pan out either

Is Vistra stock a sell

But this doesn't necessarily mean you should sell Vistra stock

Even based on just what we already know, analysts forecast strong earnings growth for Vistra going forward -- better than 20% annually

That's almost fast enough growth to justify the stock's 27. 5x earnings valuation, even without a nu renaissance

And Vistra stock's 20% cheaper when valued on free cash flow than when valued on generally accepted accounting principles (GAAP) earnings, too

At 23x FCF and paying a modest 0. 5% dividend yield, Vistra stock looks almost cheap enough to buy

Rich Smith has no position in any of the stocks mentioned

The Motley Fool has no position in any of the stocks mentioned

The Motley Fool has a disclosure policy.