12 Best Utility Stocks to Buy According to Hedge Funds

1. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 97

Vistra Corp. (NYSE:VST) headquartered in Irving, Texas, is a leading integrated power company that operates in the electricity and natural gas markets. The company serves 5 million residential, commercial, and industrial customers in 16 states and Washington, D.C. through its retail brand TXU Energy. Vistra Corp.’s (NYSE:VST) integrated business model includes generation, commercial, and retail operations.

Vistra Corp.’s (NYSE:VST) management believes that the growing demand for data centers and the increasing need for cloud computing and artificial intelligence presents a significant opportunity for the company to grow its business. The company is taking a multi-faceted approach to capitalize on this opportunity. Vistra Corp. (NYSE:VST) is in detailed discussions with several data center developers and hyperscalers to provide power to their facilities and is exploring various structures, including co-location deals, new build projects, and portfolio approaches. The company’s Comanche Peak nuclear plant in Texas has become an attractive site for data center development due to its speed-to-market advantage and the state’s favorable business environment.

As Vistra Corp. (NYSE:VST) continues to pursue data center development opportunities, the company is also focused on ensuring that its growth is sustainable and responsible. The company’s leadership team recognizes that the growth of data centers will require significant investments in new generation and transmission infrastructure. The company is working closely with stakeholders, including policymakers, transmission and distribution utilities, and local officials, to advance these opportunities and create value for its customers and shareholders.

While we acknowledge the potential of Vistra Corp. (NYSE:VST) to grow, 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.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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