10 Best Upside Stocks To Buy Right Now

2. Vistra Corp. (NYSE:VST)

Upside Potential as of March 10: 67.95%

Number of Hedge Fund Holders: 120

Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company in the US. With a portfolio of generation assets which include natural gas, nuclear, and renewables, it provides reliable energy solutions. It also engages in wholesale energy trading and risk management.

The company is expanding to meet rising power demands, driven partly by AI data centers. It’s augmenting gas assets in Texas by 500 MW, converting a coal plant to gas (2027), and extending another plant’s operation (2027). Solar and battery projects, which include those for Amazon and Microsoft, will add over 600 MW. The company is also developing 860 MW of gas peaker plants (targeted for 2028).

The company is addressing growing load demands by advocating for market mechanisms that incentivize new generation. It’s encouraging to build new power plants to meet increasing electricity usage. It is highlighting the need for reliable dispatchable resources. It’s also exploring a potential 10% upgrade to its nuclear fleet. On March 5, Daiwa initiated coverage of Vistra Corp. (NYSE:VST) with a Neutral rating and a $120 price target. Daiwa believes that this company is a great AI story.

Meridian Hedged Equity Fund is positive on the company because of tightening power markets, strategic acquisitions, and strong financial performance. It stated the following in its Q3 2024 investor letter:

“Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company, primarily serving Texas and the Midwest. We own Vistra because we expect power markets to continue tightening as baseload supply declines, coupled with rising demand from data centers, electric vehicles, and manufacturing reshoring. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The stock performed well during the period for three key reasons: tightening energy markets and strengthened pricing in forward-year energy contracts, the continuation of Vistra’s aggressive share repurchase program, and the company’s announced plan to acquire the remaining interest in Vistra Vision at an attractive valuation. Additionally, the company reaffirmed its 2024 guidance, indicating that results are trending toward the upper end of the previously projected range. We took advantage of the stock’s strength this quarter to trim our position.”