Outperforming Utility Stock Set to Join S&P 500

Vistra Corp (NYSE:VST) is up 3.1% premarket, after news that the utilities stock will join the S&P 500 Index (SPX), effective before the market open Wednesday, May 8. Vistra will replace Pioneer Natural Resources, which was just acquired by Exxon Mobil (XOM) in a $60 billion takeover. 

Should these gains hold, VST will extend last session's record high of $83.03. The stock is up 111.6% since the start of 2024, with support from the 40-day moving average catching last month's pullback. Year over year, Vistra stock has skyrocketed over 250%. 

All 10 analysts in coverage carry a "buy" or better rating on VST. There is room for price-target hikes, however, as the 12-month consensus price target of $72.95 is a 13.4% discount to Friday's close. 

The stock could be due for a short-term breather here soon, given its recent tear. It's 14-day relative strength index (RSI) of 78.4 would corroborate this, as it sits in "overbought" territory. 

The security looks to be a good target for premium buyers, based on its Schaeffer's Volatility Scorecard (SVS) of 84 (out of 100). In other words, the shares have regularly made bigger moves than options traders were pricing in during the last 12 months.