1. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 97
While Cramer noted Vistra Corp. (NYSE:VST) stock’s gains in 2024, he cautioned against being greedy.
“… Vistra, up 258%. Vistra’s the largest competitive generator of electricity in the country and the second largest nuclear play thanks to an acquisition, very smart acquisition it made last March. We have a shortage of clean power in America and we need more of it to support the big data center build-out. Let me say it from the outset that I’m starting to think this move is getting to be absurd. Vistra’s like a stock created for the moment, the visible way to play data center expansion.
I come back and say Vistra and its doppelganger Constellation Energy are utilities with no real ability to scale at the level that the stocks would indicate. Although Constellation got a big contract today from the Feds that could help them add more nukes if all goes well. I say don’t be too greedy with Vistra please because the aura will disappear once people realize that it doesn’t have the ability to grow fast enough to back up this move. It can go higher, but it is starting to gimme a nosebleed.”
Vistra (NYSE:VST) is an electricity retailer and power generation company that provides services to a broad spectrum of customers, from residential to commercial and industrial clients. In March 2024, it acquired Energy Harbor Corp., boosting its zero-carbon generation and retail electricity business by adding 4,000 megawatts of nuclear power and around 1 million retail customers. Later in 2024, the company also acquired a 15% minority stake in Vistra Vision.
The acquisition will boost the company’s nuclear capacity by approximately 970 megawatts and expand its solar and energy storage capacity by about 200 megawatts. Looking ahead to 2025, the company has provided guidance for ongoing operations adjusted EBITDA to be in the range of $5.5 billion to $6.1 billion.
The midpoint of this range, $5.8 billion, exceeds the upper end of its previous 2025 forecast of $5.7 billion, which shows a positive outlook for the company. Additionally, Vistra (NYSE:VST) has maintained its forecast for 2026, with ongoing operations adjusted EBITDA expected to exceed $6 billion, with potential for significant growth beyond that figure.
While we acknowledge the potential of Vistra Corp. (NYSE:VST) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than VST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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