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8. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 92  

Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company. AI data center demand has helped fuel a massive rally in the utilities sector. This is evident by the fact that the S&P 500 utility sector more than doubled the returns of major market indexes and other sectors of the economy during August. Over the month-long period, a basket of utility stocks returned close to 5.3% to investors, compared to the 2.2% return of the S&P 500 and the 1.76% return of the Dow Jones Industrial Average. As the demand for power rises and prices go up, this growth momentum in the utility world is likely to persist for several months.

Vistra Corp. (NYSE:VST) is viewed in a bullish manner by Wall Street. Morgan Stanley recently raised the price target on the stock to $110 from $109 and kept an Overweight rating, highlighting that in July, utilities had outperformed the 1.22% return of the S&P by 560 bps, and the strong and stable free cash flow of Vistra was underappreciated at the current price.