Vistra and Vera Bradley have been highlighted as Zacks Bull and Bear of the Day

For Immediate ReleaseChicago, IL – December 24, 2024 – Zacks Equity Research shares Vistra VST as the Bull of the Day and Vera Bradley, Inc. VRA as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Marvel Technologies MRVL, Zurich Insurance Companies ZURVY and McKesson MCK.Here is a synopsis of all five stocks:Bull of the Day:Artificial intelligence and Nvidia were the talk of Wall Street throughout 2024. Yet, nuclear and energy transition powerhouse Vistra stock crushed Nvidia and every other S&P 500 stockout outside of one.Vistra thrives as customers and Wall Street flock to the competitive power generator standout. VST has posted booming growth and its outlook is impressive as the U.S. invests in the energy transition and big technology companies such as Amazon and Meta go all-in on nuclear energy to power the AI age.Vistra's market-crushing performance includes a 15% pullback since mid-November. VST is finding support near its 50-day moving average.Why Wall Street Loves Vistra StockVistra is the largest competitive power generator in the U.S. VST's growing portfolio spans nuclear, solar, battery storage, natural gas, and beyond. The Texas-based firm owns the second-largest competitive nuclear fleet and boasts the second-largest energy storage capacity in the country.Vistra serves around 5 million residential, commercial, and industrial retail customers across 20 states, including every major competitive wholesale market.Vistra operates in a vital area of the economy since tech companies and many other industries are turning to energy companies focused on nuclear and other non-fossil fuels for their power needs.VST bought Energy Harbor in March to boost its zero-carbon generation portfolio. Vistra added a 4,000-megawatt nuclear generation fleet and retail business.The Energy Harbor deal transformed Vistra into one of the foremost integrated zero-carbon generation and retail electricity companies.Vista's growing and diverse portfolio also critically includes natural gas, which will remain vital to the U.S. economy for decades and continue to grow as coal plants shutter.Vistra said earlier this year that the Inflation Reduction Act provides VST the chance to realize material benefits of its renewables and energy storage projects and provide strong price support via the nuclear production tax credit.Vistra is also working on deals with big tech companies. VST said on its Q3 earnings call that it is "in discussions with two particular large companies about building new gas plants to support a data center project."Vistra's chief strategy and sustainability officer Stacey Dore said "we might be able to pursue co-location deals at multiple sites and combine that with even building some new generation... We're in pretty detailed customer discussions at some of our nuclear sites."Wall Street giants like Goldman Sachs view the energy transition as one of the most important pillars of the U.S. economy in the back half of this decade and beyond. On top of that, nuclear energy will power the energy-hungry AI era. Amazon, Alphabet, Microsoft, and Meta all made significant nuclear energy deals in 2024.The U.S. government is growing its support for nuclear energy as the world's largest economy aims to triple its nuclear energy capacity by 2050 to help slowly wean itself off of fossil fuels.The International Energy Agency estimates that $2 trillion was spent on clean energy technologies and infrastructure in 2024, across wind, solar, energy storage, nuclear, the electricity grid, and beyond.Vistra's Impressive Growth OutlookVistra posted a blowout beat-and-raise third quarter. VST's 2024 consensus earnings estimate has jumped 13% since its Q3 release, with its FY25 outlook 7% higher, helping Vistra earn a Zacks Rank #1 (Strong Buy) right now.Vistra is projected to grow its adjusted earnings by 48% in 2024 and 19% next year, based on current Zacks estimates.The power giant is expected to grow its revenue by 33% in 2024 to climb from $14.78 billion to $19.69 billion. VST is set to follow this performance up with another 14% sales expansion in 2025. This outlook follows Vistra's 9% average revenue expansion in the past three years.Time to Buy One of the Best Stocks of 2024?Vistra has soared 265% in 2024 to blow away Nvidia's 185%, and fellow nuclear and energy transition stars Constellation Energy's 98% and GE Vernova's 145%.VST has remained on strong footing to close out the year, up 25% in the past three months to outpace Nvidia, Constellation, and the S&P 500.Vistra's 2024 run is part of a 540% climb in the last three years, leaving its Utilities sector's 1% and the S&P 500's 25% run in the dust. Vistra's three-year run also blew away Constellation's 330% and Nvidia's 370%.Despite Vistra's stellar performance, it trades 15% below its November records and 19% below its average Zacks price target. VST is attempting to hold its ground at its 50-day moving average after finding buyers near its October highs.The recent cooldown helped Vistra move from overbought RSI levels to below neutral. Vistra's Price/Earnings-to-Growth (PEG) Ratio offers 33% value compared to the Zacks Utilities sector.Why Investors Should Buy Vistra for 2025Wall Street loves Vistra stock, with 11 of the 12 brokerage recommendations Zacks has at "Strong Buys." The company pays a dividend and authorized an additional $1 billion of share repurchases in November.Vistra stock helps investors gain exposure to the unstoppable energy transition and the nuclear energy revival. Both megatrends Vistra is riding are supported by two pillars of stability: technology titans such as Microsoft and the U.S. government.Bear of the Day:Vera Bradley, Inc. is facing multiple headwinds, and attempting to transform its business model and transition its brand positioning.Fashion and style are often fickle, and Vera Bradley is dealing with a confluence of economic and industry forces that have sent VRA stock tumbling in 2024 alongside its earnings estimates.What's Going on with Vera Bradley StockVera Bradley is famous for its women's handbags, luggage, home accessories, and more. Vera Bradley's colorful patterns and quilted offerings stood out and were rather instantly recognizable.Vera Bradley has expanded its offerings. Still, VRA has found it difficult to sustain its cool factor and stay on trend in the world of fast fashion and a seemingly endless array of e-commerce brands.Vera Bradley stock has fallen rather steadily since 2011 (it went public in late 2010). This backdrop makes sense considering that Vera Bradley's sales dropped on a YoY basis in nine out of the last 11 years (with two big jumps mixed).Vera Bradley's sales declined by 6% in fiscal 2024 and 29% in Q3 of its fiscal 2025 (period ended November 2). VRA also swung to a loss of -$0.27 a share in its third quarter. The rough showing marked its fourth straight huge bottom-line miss.Vera Brandley said Q3 was "extremely challenging" as it remains in the "early stages of Project Restoration." VRA is attempting to "transform" its "business model and transition Vera Bradley's brand positioning.""With the current consumer mindset focused on value, we have more work ahead of us on our repositioning journey," CEO Jackie Ardrey said in prepared remarks last quarter."Importantly, we've made meaningful adjustments to our assortment and value proposition in response to results and customer feedback. I'm pleased to report that we are seeing steady progress with several green shoots that have continued in the fourth quarter to date."Vera Bradley provided downbeat guidance on December 11.VRA is projected to post an adjusted full-year loss of -$0.08 a share and its revenue is set to fall another 16% in FY25.Stay Away from VRA Stock?Vera Bradley's downward earnings revisions activity helps it earn a Zacks Rank #5 (Strong Sell). The company is projected to return to positive earnings next year, but its FY26 EPS estimate is down 30% since its Q3 release.Vera Bradley stock has dramatically underperformed the S&P 500 and its industry since its IPO, down roughly 88%. Investors are likely better off looking at other retail stocks since right now.Additional content:A Christmas Holiday Trading Week: Global Week AheadIn the Global Week Ahead, a Christmas holiday 2024 trading week is upon us.During this final "Week Ahead" of the year, a spare set of macro data releases will be eyed for divergences, between a strong U.S. economy and "The Rest of the World."In particular, stock traders will look for macro-level behavioral changes, ahead of the incoming Trump administration.However, New Year's 2025 clues likely are needed.To gauge any meaningful change in U.S. or global macro-economic trends better.Here is what S&P Global Chief Economist Chris Williamson shared—(1) Highlights for the Christmas 2024 trading week include:·        Real GDP growth updates from the U.K. and Spain, accompanied later in the week by industrial production and retail sales for Japan, plus trade balance data out of the U.S.·        Central bank meeting minutes from Japan, Canada and Australia.1.     The Bank of Japan's meeting notes will be eyed for a sense of how hawkish BoJ policymakers are, after December's 8-1 decision to hold,2.     Dovish outlooks at the central banks of Canada and Australia will be monitored, especially for any clues as to how policymakers in these countries may respond to a changing tariff environment in 2025.(2) We must wait for New Year 2025 to see more interesting, timelier economic data.·        In particular, the first week of the New Year includes worldwide PMI data, while·        The second week brings the U.S. non-farm payroll report, along with·        Flash December inflation numbers out of the Eurozone, and an update on U.K. recruitment.·        The latter has become especially newsworthy, as U.K. companies have shown a reluctance to hire following recent payroll-tax rises announced by the government.(3) December flash PMIs showed a widening divergence, between a fast-expanding U.S. economy and a Euro Zone economy mired in a downturn for a second month running.Japan's economy also remained subdued.U.S. survey respondents have reported increasingly robust outlooks for the year ahead -- amid hopes of increased government support in terms of protectionism, lower taxation, domestic political stability and looser regulation.The opposite applies in Europe. U.S. protectionism worries are compounded by political crisis in Germany and France.How such tariff worries are playing out in other economies, notably mainland China, will be especially awaited.(4) Finally, we may see some pull-back in the December 2024 U.S. non-farm payroll numbers from the hurricane-related rebound seen in November.Though U.S. PMI data have hinted at a modest rise in private sector jobs to signal some sustained underlying labor market health.Zacks #1 Rank (STRONG BUY) StocksI picked a diverse set of large-cap stocks this week.(1) Marvel Technologies: This is a $112 a share stock, with a market cap of $94.4B, found in the electronics-semiconductor industry. I see a Zacks Value score of F, a Zacks Growth score of C and a Zacks Momentum score of F.(2) Zurich Insurance Companies: This is a $30 a share stock, with a market cap of $87.7B, found in the insurance-multi-line industry. I see a Zacks Value score of C, a Zacks Growth score of C and a Zacks Momentum score of C.(3) McKesson: This is a $581 a share stock, with a market cap of $73.5B, found in the medical-dental supplies industry. I see a Zacks Value score of A, a Zacks Growth score of B and a Zacks Momentum score of F.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339https://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report McKesson Corporation (MCK): Free Stock Analysis Report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report Vera Bradley, Inc. (VRA): Free Stock Analysis Report Zurich Insurance Group Ltd. (ZURVY): Free Stock Analysis Report Vistra Corp. (VST): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks