Jim Cramer’s Latest Stock Picks

2. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 92

When a caller asked Cramer about Vistra Corp. (NYSE:VST), he said:

“… I’ve got to tell you, they’re interchangeable. They have been resting of late. I feel like they’re just resting and then they’ll go higher. But I don’t know when that’s going to happen.”

Vistra (NYSE:VST) is a prominent electricity retail and power generation company, catering to residential, commercial, and industrial customers. The company has a generation capacity of approximately 41,000 megawatts and serves around 5 million clients. In recent years, the company has expanded its operations through acquisitions, including Tricor Group and Energy Harbor, along with Vistra Vision LLC, which is still pending closure.

The company has increased its nuclear capacity to over 6,400 megawatts. This growth in capacity, coupled with recent acquisitions, positions the company to generate more revenue driven by production tax credits (PTCs) in the future. In its Q2 2024 earnings report, the company raised its midpoint guidance for adjusted EBITDA for 2025 from a range of $4.55 billion to $5.05 billion, now expecting between $5.2 billion and $5.7 billion.

On October 22, Seaport Research raised the price target on Vistra (NYSE:VST) to $155 from $126 and maintained a Buy rating. The firm is closely monitoring the valuations and cash generation of both thermal and renewable power independent power producers (IPPs), noting challenges in seeing growth in cash EBITDA among major renewable developers despite substantial annual investments. The firm added that in contrast, thermal IPPs, including Vistra, are expanding gas and nuclear plants under long-term contracts. The company is among the top choices of the firm for thermal and renewable power IPPs.