1. Vistra (NYSE:VST)
Number of Hedge Fund Holders: 93
Vistra (NYSE:VST) is a vertically integrated energy company based in Texas, with a diversified energy portfolio that spans electricity generation, wholesale energy sales, fuel production, and logistics. The company supplies electricity and natural gas to residential, commercial, and industrial customers. In addition to these services, Vistra (NYSE:VST) operates battery energy storage facilities, and its nuclear assets are crucial in supplying power for artificial intelligence (AI) applications.
As the demand for clean energy grows, particularly from AI and data centers, Vistra (NYSE:VST) is well-positioned to capitalize on this trend. In March, the company completed its acquisition of Energy Harbor, expanding its nuclear capabilities by an additional 4,000 megawatts and adding around 1 million retail customers to its portfolio.
Vistra (NYSE:VST) has also integrated AI technologies into its operations, boosting the efficiency of its power plants, improving thermal performance, and reducing carbon emissions. The Heat Rate Optimizer (HRO) was implemented in nearly 67 power-generation units across 26 plants, resulting in an average 1% increase in efficiency and saving the company millions in operational costs.
For the quarter ending June 30, Vistra’s (NYSE:VST) net income from core operations rose to $492 million, up from $409 million the previous year. The company’s Adjusted EBITDA also surged by 40%, reaching $1.41 billion compared to $1.0 billion in the same quarter the prior year.
Vistra (NYSE:VST) is a strong contender for data centers in need of reliable, clean energy solutions. Its strategic investments in clean energy, coupled with its ability to leverage AI and capitalize on market trends, present a compelling opportunity for investors seeking to benefit from the ongoing shift in the energy landscape. The company’s earnings are expected to surge by 29.52% in the current year. Industry analysts are bullish on Vistra’s (NYSE:VST) stock price and have a consensus Buy rating at a target price of $136.18, which implies an 8.33% increase from its current level.
While we acknowledge the potential of Vistra (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.
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