Demand Boom Sends Vistra Corp. (VST) Stock Higher

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Mid Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Mid-cap stocks rebounded in the second quarter, delivering a strong recovery. The Russell Midcap Growth Index (up 18.20%) outperformed the Russell Midcap® Value Index (up 5.34%) in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Carillon Eagle Mid Cap Growth Fund highlighted stocks such as Vistra Corp. (NYSE:VST). Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company. The one-month return of Vistra Corp. (NYSE:VST) was -13.88%, and its shares gained 115.78% of their value over the last 52 weeks. On August 29, 2025, Vistra Corp. (NYSE:VST) stock closed at $189.11 per share, with a market capitalization of $62.495 billion.

Carillon Eagle Mid Cap Growth Fund stated the following regarding Vistra Corp. (NYSE:VST) in its second quarter 2025 investor letter:

"Vistra Corp. (NYSE:VST) is an integrated electricity and power generation company. As a result of increasing forecasts for future power demand growth, largely brought on by the rapid growth of artificial intelligence, the company’s shares have continued to climb on investors’ expectations for future power prices. A tailwind for the stock has been Vistra’s potential to announce future power purchase agreements (PPAs) with large technology companies to satisfy the outsized power requirements of their artificial intelligence endeavors."

Vistra Corp. (NYSE:VST) is in 28th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 111 hedge fund portfolios held Vistra Corp. (NYSE:VST) at the end of the second quarter, which was 102 in the previous quarter. While we acknowledge the potential of Vistra Corp. (NYSE:VST) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Vistra Corp. (NYSE:VST) and shared the list of best stocks to buy according to billionaire hedge fund managers. Vistra Corp. (NYSE:VST) contributed to ClearBridge Mid Cap Growth Strategy's performance in Q2 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.