Vistra Stock Sits 37% Below Its High While Power Demand Keeps Climbing. Should You Buy It?
The power producer's adjusted EBITDA is up more than 30% and its nuclear fleet is signing 20-year deals with tech giants. The stock is priced like none of that happened.
Overview
Electricity demand is doing something it hasn't done in decades in the United States: growing fast. Vistra (NYSE:VST), one of the country's largest competitive power producers, told investors in its latest quarterly filing that data centers, the electrification of oil field operations, and electric vehicles are contributing to projected "fast-paced load growth" in the markets it serves.
You wouldn't know it from the stock. Shares have dropped about 37% from a 52-week high of $219.82, to about $139 as of this writing. And Vistra has company, as the whole independent power group has sold off this year. Nuclear operator Constellation Energy, for instance, is down about 32% from its own high.
Details
With demand for Vistra's product climbing while its share price falls, is this a buying opportunity?
Source
Originally published at www.fool.com.