10 Best Performing Stocks in 2024

5. Vistra Corp. (NYSE:VST)

Year-to-Date Performance as of September 23: 188.06%

Market Cap as of September 23: $38.06 billion

Number of Hedge Fund Holders: 92

Vistra Corp. (NYSE:VST) is a Fortune 500 integrated retail electricity and power generation company, focused on providing essential energy services. It operates a diverse portfolio of power generation assets, including coal, natural gas, nuclear, and renewable energy sources, playing a vital role in meeting the energy needs of millions of people and businesses across the US.

The company is acquiring an additional 15% equity interest in its subsidiary, Vistra Vision LLC, for $3.2 billion. The purchase will be completed through 5 transactions over 2 years. Vistra Vision owns nuclear generation facilities (6.4 GW), renewables, energy storage, and retail businesses.

It expanded its nuclear power capacity and retail customer base in March by acquiring Energy Harbor for $3.43 billion. Additionally, the company received approval to extend the operation of its Comanche Peak Nuclear Power Plant through 2053, securing reliable zero-carbon electricity generation for another 20 years. Building on such expansions, the company was able to grow revenue by 20.57% year-over-year in Q2 2024.

Its AI-powered Heat Rate Optimizer has been implemented in 67 power-generation units, improving efficiency by an average of 1% and saving over $23 million annually. It has helped reduce carbon emissions, contributing to the company’s goals of a 60% reduction by 2030 and net-zero emissions by 2050.

US data center electricity consumption is projected to increase by 30% from 2022 to 2026, contributing to a 6% rise in the nation’s overall power consumption. Globally, data center energy use is expected to double in the same period. This represents a significant increase in the energy share of data centers, ranging from 3% to 10%. This growth will greatly benefit Vistra Corp. (NYSE:VST), and position it as an industry leader as data centers look for signing power purchase deals with nuclear power providers.

Meridian Hedged Equity Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q2 2024 investor letter:

“Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company with operations across 20 U.S. states and Washington D.C. We identified Vistra as a likely beneficiary of the projected growth of power-hungry data centers, spurred by the rise of generative AI, increasing electricity demand, and higher power prices. The stock performed well after the company delivered stronger than expected earnings. Management also provided forward guidance that exceeded investors’ expectations and reaffirmed shareholder-friendly plans for sizable share repurchases through 2025. We trimmed our position in the quarter following the strong performance and continue to see strong long-term prospects for the company.”