1. Vistra Corp. (NYSE:VST)
Number of Billionaire Holders: 25
Topping our list of the Best Energy Stocks to Buy Now is Vistra Corp. (NYSE:VST), a leading Fortune 500 integrated retail electricity and power generation company based in Texas. Vistra is the largest competitive power generator in the US with a capacity of approximately 41 gigawatts.
Vistra Corp. (NYSE:VST) had a strong Q4 2024 as its revenue grew 31.16% YoY to just over $4 billion in Q4 2024, beating market estimates by $124 million. Meanwhile, its EPS of $2.41 was in line with expectations. The company maintains a robust balance sheet, generating an operating cash flow of over $4.56 billion in 2024 and ending the year with $1.2 billion in cash on hand. Vistra has committed to a minimum of $2.25 billion in share buybacks through 2025, with an additional $1 billion targeted.
A number of high-profile investors hold a position in Vistra Corp. (NYSE:VST), including the Democrat Nancy Pelosi. Pelosi recently purchased 50 Vistra call options with a strike price of $50 that expire in January 2026, which, given her track record in well-timed investments, signals strong conviction.
Meridian Funds stated the following regarding Vistra Corp. (NYSE:VST) in its Q4 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail and power generation company with operations across the U.S., primarily serving Texas and the Midwest. We believe Vistra is well-positioned to capitalize on the structural tightening of power markets, as electricity demand accelerates, and baseload generation capacity continues to retire. This trend has been amplified by the rapid growth of AI, which is driving unprecedented demand for data centers and the power required to run them. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The company has locked in much of this value via hedging, providing clear visibility into future cash flows. Vistra has also successfully grown its retail business and completed a strategic acquisition of Energy Harbor, which added a portfolio of nuclear, retail, and renewable assets.”
Overall, Vistra Corp. (NYSE:VST) ranks first on our list of the best energy stocks to invest in according to billionaires. While we acknowledge the potential for VST to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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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