
Why Did Vistra Stock Drop Today?
Key Takeaways
Vistra is one nuclear stock that looks almost cheap enough to buy.
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investment
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July 1, 2025
01:44 PM
The Motley Fool
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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
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