We recently compiled a list of the 10 S&P 500 Stocks on Jim Cramer’s Radar. In this article, we are going to take a look at where Vistra Corp. (NYSE:VST) stands against the other S&P 500 stocks.
Jim Cramer, host of Mad Money, recently discussed the current state of the market and also discussed both the leading and lagging stocks within the S&P 500. He posed an intriguing question: What if Trump’s tariffs are more negotiable than expected? Instead of a hard-line approach, Cramer suggested they could end up being more like a “steak knife” than a “meat axe,” meaning less harmful to trade and international relations.
READ ALSO Jim Cramer Discussed These 10 NASDAQ 100 Stocks Recently and 8 Stocks on Jim Cramer’s Radar
While a more reasonable tariff policy might not be ideal for global trade, it would be a positive development for stocks, particularly if it results in lower prices for American consumers or if multinational companies move their manufacturing to more favorable countries. Cramer emphasized that, for stockholders looking for growth, hopes should be placed on negotiable tariffs.
“If you own stocks and you want them higher, you have to hope for negotiable tariffs that could cause countries to lower prices to us or make multinational companies move their manufacturing base here to a more friendly country.”
Cramer also discussed the S&P 500’s performance this year, noting that, while it is clear which stocks have thrived in the Nasdaq, the winners and losers in the broader S&P 500 have been more difficult to pinpoint.
Additionally, Cramer mentioned that several of the stocks in his Charitable Trust, which are reliant on a rebound in China, are ones he’s not excited about at the moment, especially considering the disappointing Chinese economic data. He mentioned that his dismay for such stocks will only last until “they annualize the crummy Chinese numbers and then they’ll probably bounce back.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 2. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Solar panel workers installing a new farm for clean energy generation.
Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 97
While Cramer noted Vistra Corp. (NYSE:VST) stock’s gains in 2024, he cautioned against being greedy.
“… Vistra, up 258%. Vistra’s the largest competitive generator of electricity in the country and the second largest nuclear play thanks to an acquisition, very smart acquisition it made last March. We have a shortage of clean power in America and we need more of it to support the big data center build-out. Let me say it from the outset that I’m starting to think this move is getting to be absurd. Vistra’s like a stock created for the moment, the visible way to play data center expansion.
I come back and say Vistra and its doppelganger Constellation Energy are utilities with no real ability to scale at the level that the stocks would indicate. Although Constellation got a big contract today from the Feds that could help them add more nukes if all goes well. I say don’t be too greedy with Vistra please because the aura will disappear once people realize that it doesn’t have the ability to grow fast enough to back up this move. It can go higher, but it is starting to gimme a nosebleed.”
Vistra Corp. (NYSE:VST) is an electricity retailer and power generation company that provides services to a broad spectrum of customers, from residential to commercial and industrial clients. In March 2024, it acquired Energy Harbor Corp., boosting its zero-carbon generation and retail electricity business by adding 4,000 megawatts of nuclear power and around 1 million retail customers. Later in 2024, the company also acquired a 15% minority stake in Vistra Vision.
The acquisition will boost the company’s nuclear capacity by approximately 970 megawatts and expand its solar and energy storage capacity by about 200 megawatts. Looking ahead to 2025, the company has provided guidance for ongoing operations adjusted EBITDA to be in the range of $5.5 billion to $6.1 billion.
The midpoint of this range, $5.8 billion, exceeds the upper end of its previous 2025 forecast of $5.7 billion, which shows a positive outlook for the company. Additionally, Vistra Corp. (NYSE:VST) has maintained its forecast for 2026, with ongoing operations adjusted EBITDA expected to exceed $6 billion, with potential for significant growth beyond that figure.
Overall VST ranks 1st on our list of the S&P 500 stocks on Jim Cramer’s radar. While we acknowledge the potential of VST as an investment, 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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Disclosure: None. This article is originally published at Insider Monkey.