5 Most Undervalued Utility Stocks to Buy According to Hedge Funds

1. Vistra Corp. (NYSE:VST)

Latest P/E Ratio: 10.24

Number of Hedge Fund Holders: 52

Irving, Texas-based Vistra Corp. (NYSE:VST) is a leading integrated retail electricity and power generation company with operations in 20 states and the District of Columbia.

On March 6, Vistra Corp. (NYSE:VST) announced a definitive agreement to acquire Energy Harbor Corp in a cash and share transaction which includes a cash consideration of $3 billion and a 15% stake in a new company comprising of Energy Harbor assets and all of Vistra’s assets other than the company’s gas and coal generation fleet. The transaction is expected to close in Q4 2023.

Vistra Corp. (NYSE:VST) has been on a significant capital allocation program announced in Q4 2021. Since the launch of the program, the company has repurchased nearly 26% of its shares and has collectively returned $3.8 billion to its shareholders during the period.

As of Q3 2023, Vistra Corp. (NYSE:VST) was the most sought-after stock among hedge funds on our list of 11 most undervalued utility stocks to buy according to hedge funds, as 52 of the elite hedge funds tracked by Insider Monkey held its shares, valued at $1.3 billion. Howard Marks’ Oaktree Capital Management was its largest hedge fund shareholder with ownership of 9.0 million shares valued at $299 million.

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