6. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 92
Vistra Corp. (NYSE:VST) is a prominent integrated retail electricity and power generation company that serves customers across the United States and ranks among the largest competitive power generators in the country. It ranks at 6 on our list of best momentum stocks.
The company has a capacity of about 41,000 megawatts, which is enough to power 20 million homes. It focuses on energy transformation through a diverse portfolio that includes natural gas, nuclear, coal, solar, and battery storage. It operates the second-largest fleet of nuclear power plants in the U.S. and focuses on sustainability by expanding its zero-carbon resources.
The company also adopts a customer-centric approach as it offers over 50 renewable energy plans to around 5 million retail customers. Vistra (NYSE:VST) aims for a 60% reduction in greenhouse gas emissions by 2030 and targets net-zero emissions by 2050.
The company is further expanding its portfolio by acquiring the remaining 15% equity interest in Vistra Vision LLC, currently held by Nuveen and Avenue, for a total cash purchase price of $3.248 billion. Vistra Vision LLC owns nuclear facilities like Beaver Valley, Comanche Peak, Davis-Besse, and Perry, totaling about 6.4 gigawatts in capacity.
In July, the company secured important regulatory approval to extend the Comanche Peak Nuclear Power Plant’s operational lifespan to 2053, which adds 20 years to its initial licenses. The facility, which has been operational since 1990, consists of two units with a combined capacity of 2,400 megawatts, and has produced over 582 million megawatt-hours of clean electricity.
Vistra (NYSE:VST) has been one of the top gainers of the S&P 500 in 2024 which has gained nearly 250%, as of October 3. The company has been justifying its stock price gains with its performance.
In Q2, despite lower wholesale energy prices, the company’s diversified portfolio achieved record power production and solid retail growth. The company reaffirmed its 2024 adjusted EBITDA guidance of $4.550 billion to $5.050 billion and projected potential benefits from the nuclear production tax credit.
For 2025, the company raised its estimated adjusted EBITDA midpoint range by $200 million due to favorable market conditions and hedging strategies. It is also a shareholder-friendly company that has returned about $5 billion to investors since late 2021. Vistra (NYSE:VST) plans to continue share buybacks of at least $2.25 billion through 2025.
Fidelity Growth Strategies Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q2 2024 investor letter:
“An overweight stake in utility company Vistra Corp. (NYSE:VST) (+24%) was the top individual relative contributor. In Q1, the Texas-based independent power producer completed its acquisition of Ohio-based nuclear fleet operator Energy Harbor. The new Vistra, with its expanded geographic footprint, is in strong position to gain from the buildout of AI-capable data centers, which require enormous amounts of power to run. It is expected that local grids in the U.S. will need to invest heavily over the coming years to improve their power infrastructure and meet growing demand. In the nearer term, firms may choose to contract with independent power producers, like Vistra, rather than rely on the local provider.”
