Top 10 Stocks Wall Street is Discussing

3. Vistra Corp (NYSE:VST)

Number of Hedge Funds Investors: 97

Mike Khouw, OpenInterest.Pro chief strategist, said in a recent program on CNBC that he still sees rising demand for Vistra Corp (NYSE:VST) despite short-term volatility.

“I would say, and I still anticipate that there is going to be this huge ramp in demand. This is really more of a short-term question about pricing than it is about the fundamentals in terms of the demand for AI data centers and the power needs that they’re going to have. So, you know, I tend to be still a little bit positive, but I rather like trades like this for those who are long. The worst thing that would happen if you put a trade like this on is you’re going to lose about 6% of the current stock price. Given the kinds of moves that Kelly was just highlighting, I don’t think that’s a huge risk to have for a hedge that lasts you out till June.”

Meridian Hedged Equity Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q3 2024 investor letter:

“Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company, primarily serving Texas and the Midwest. We own Vistra because we expect power markets to continue tightening as baseload supply declines, coupled with rising demand from data centers, electric vehicles, and manufacturing reshoring. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The stock performed well during the period for three key reasons: tightening energy markets and strengthened pricing in forward-year energy contracts, the continuation of Vistra’s aggressive share repurchase program, and the company’s announced plan to acquire the remaining interest in Vistra Vision at an attractive valuation. Additionally, the company reaffirmed its 2024 guidance, indicating that results are trending toward the upper end of the previously projected range. We took advantage of the stock’s strength this quarter to trim our position.”