Jim Cramer’s Latest Lightning Round: 12 Stocks to Watch

2. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 92

Cramer acknowledged that Vistra Corp. (NYSE:VST) stock situation is complicated but also said to own it.

“Okay, this is a very complicated situation because what I said the other day was you gotta let it come in, it went down for a couple days and then it’s right back up. Let’s just say this, own it. Put a half position on, no more, put a half position on, and then let it come down because it has had such an amazing rally. I can’t just say go buy it.”

Recently, while talking about the stock’s price movement, Cramer commented that while it might seem unusual for a traditional utility to see such growth, he emphasized that carbon-free electricity has become a highly sought-after commodity. Vistra (NYSE:VST) is an electricity retail and power generation company that provides services to residential, commercial, and industrial customers. It has a generation capacity of approximately 41,000 megawatts and serves around 5 million clients across various markets.

On October 17, JPMorgan analyst Jeremy Tonet initiated coverage of Vistra (NYSE:VST) with an Overweight rating and a $178 price target. The firm holds a positive outlook on independent power producers, referring to favorable conditions despite the stock’s performance earlier in the year. Tonet highlights several structural tailwinds influencing the industry, such as manufacturing onshoring, increasing electrification trends, and the growth of data centers. These factors contribute to what he describes as a “paradigm shift” in power demand.

JPMorgan believes that the growth in competitive market supply may not keep pace with this rising demand, which could allow companies to secure larger profit margins over time. The firm views Vistra as having a particularly appealing risk/reward profile within the sector.