10 Best Stocks to Buy and Hold For 5 Years

7. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 92 

Vistra Corp. (NYSE:VST) is an electricity generation company based in Texas, United States. The company has more than 5 million customers, 6,800 employees, and 41,000 megawatts of power generation capacity.

As of September 30, the company hedged nearly 100% of expected generation volumes for 2024, 95% for 2025, and 64% for 2026. During Q3 2024, Vistra Corp. (NYSE:VST) grew its fleet of zero-carbon resources by securing two power purchase agreements at new solar facilities, with a total capacity of 600 megawatts. The company also expanded its interest in nuclear energy by acquiring a 15% minority stake in its Vistra Vision subsidiary, making Vistra Corp. (NYSE:VST) the sole owner of its carbon-free assets. This acquisition increases Vistra Corp.’s nuclear ownership by 970 megawatts.

On the nuclear energy front, Vistra Corp. (NYSE:VST) announced that the Nuclear Regulatory Commission (NRC) approved the company’s request to extend its operating licenses for its Comanche Peak Nuclear Power Plant through 2050 and 2053, an added 20 years beyond the original licenses. Its Perry Nuclear Power Plant has an application for a 20-year license renewal through 2046 under process, with high expectations of it going through.

Overall, Vistra Corp. (NYSE:VST) is well-positioned to exploit the growing demand for nuclear energy from large tech companies for their AI data centers. The company already has agreements with two of the magnificent seven, positioning it as a leader in nuclear energy. Analysts are also bullish on the stock and their median price target of $145 implies an upside of 15% from current levels, as of November 7.

Fidelity Growth Strategies Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q2 2024 investor letter:

“An overweight stake in utility company Vistra Corp. (NYSE:VST) (+24%) was the top individual relative contributor. In Q1, the Texas-based independent power producer completed its acquisition of Ohio-based nuclear fleet operator Energy Harbor. The new Vistra, with its expanded geographic footprint, is in strong position to gain from the buildout of AI-capable data centers, which require enormous amounts of power to run. It is expected that local grids in the U.S. will need to invest heavily over the coming years to improve their power infrastructure and meet growing demand. In the nearer term, firms may choose to contract with independent power producers, like Vistra, rather than rely on the local provider.”