13 Best Utility Stocks to Buy According to Analysts

1. Vistra Corp. (NYSE:VST)

Average estimated analysts’ upside: 44.86%

Number of Hedge Fund Holders: 120

​Vistra Corp. (NYSE:VST) is a Fortune 500 retail electricity and power generation company, operating approximately 41,000 megawatts of generation capacity across the US, making it the largest competitive power generator in the country. VST’s diversified energy portfolio includes natural gas, nuclear, coal, solar, and battery energy storage facilities and serves around 5 million residential, commercial, and industrial customers.

Vistra Corp. (NYSE:VST) delivered strong financial performance in 2024, achieving full year adjusted EBITDA of $5.656 billion, which exceeded the top end of their original guidance range even before considering the $545 million benefit from the nuclear production tax credit recognized in Q4 2024. The company demonstrated operational excellence with its gas and coal fleet achieving approximately 95% commercial availability, while its nuclear fleet delivered a solid 92% capacity factor. Looking forward, management reaffirmed their 2025 guidance ranges for adjusted EBITDA of $5.5 billion to $6.1 billion and adjusted free cash flow before growth of $3 billion to $3.6 billion, while maintaining their outlook for a 2026 adjusted EBITDA midpoint opportunity of over $6 billion.

Vistra Corp. (NYSE:VST) is actively positioning itself to meet growing market demand through various initiatives, including completing approximately 500 megawatts of gas asset augmentations in Texas, with the remainder to be finished before summer. VST is also progressing on its zero-carbon growth strategy, completing two solar and energy storage facilities in Illinois, while beginning construction at sites in Oak Hill, Texas, and Pulaski, Illinois, which will add over 600 megawatts of renewable capacity to its portfolio. The company’s outlook is further reinforced by a strong financial position with net debt below 3x adjusted EBITDA at the end of 2024, with expectations of further deleveraging through 2025 and 2026.

Overall, VST ranks first on our list of the 13 best utility stocks to buy according to analysts. While we acknowledge the potential of 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT:  20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.

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