Yahoo Finance Did You Miss Vistra Energy's (NYSE:VST) 19% Share Price Gain?
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If you want to compound wealth in the stock market, you can do so by buying an index fund. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Vistra Energy Corp. (NYSE:VST) share price is 19% higher than it was a year ago, much better than the market return of around 8.5% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.
Check out our latest analysis for Vistra Energy
Because Vistra Energy is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Over the last twelve months, Vistra Energy's revenue grew by 68%. That's well above most other pre-profit companies. The solid 19% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. If that's the case, now might be the time to take a close look at Vistra Energy. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
This free interactive report on Vistra Energy's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Vistra Energy shareholders should be happy with the total gain of 19% over the last twelve months, including dividends. A substantial portion of that gain has come in the last three months, with the stock up 11% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. If you would like to research Vistra Energy in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
