Is Vistra Corp. (NYSE:VST) the Most Promising Stock According to Analysts?

We recently published a list of the 11 Most Promising Stocks According to Analysts. In this article, we are going to take a look at where Vistra Corp. (NYSE:VST) stands against other promising stocks.

On April 23, Stephen Parker, JPMorgan Private Bank co-head of global investment strategy, joined ‘Squawk Box’ on CNBC to express that investors should have a normal level of risk in their portfolios right now. Parker explained that while he is fully in support of remaining invested in the market, he does recommend clients to stay focused on sectors that may be more resilient in a downturn to help protect against losses while staying long. His baseline guidance is for clients to maintain a normal level of risk in their portfolios. Those holding too much cash should get invested, and those overexposed to US markets and the dollar should consider adding non-US exposure. He advised that this is a period where investors must be comfortable with discomfort, as policy uncertainty broadens the range of possible outcomes.

Parker acknowledged that while downside risks are top of mind for many investors, there is also upside potential, especially if there are positive policy surprises, such as clarity on tariffs, which could drive markets back to their highs sooner than expected. His outlook for the S&P 500 index is a wide range, with the high end being flat for the year and a possible range of 5,700-6,200. This reflects heightened policy uncertainty and difficulty in pinpointing a single target. Parker pointed out that even if it takes two years for markets to return to all-time highs, an 8% annual return would still be compelling for equities.  Reflecting on the start of the year, he noted that market multiples were considered rich following 2 consecutive years of 20%+ gains. There was optimism around deregulation and changes to corporate taxes, but few expected the S&P 500 to remain flat for 2 years from a level of 6,200. Parker further explained that even without pro-business policy changes, the market may have faced challenges after such strong recent gains. The pullback in high-performing segments of the US market has brought valuations closer to what he considers normal levels, which also sets the stage for potential upside.

Our Methodology

We sifted through the Finviz stock screener to compile a list of the top stocks that had high analysts’ upside potential (at least 35%). The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 120

Average Upside Potential as of April 23: 42.85%

Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company through five segments: Retail, Texas, East, West, and Asset Closure. It serves around 5 million customers with a generation capacity of about 41,000 megawatts, with a portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities.

The company reported a revenue of just over $4 billion in Q4 2024, which was up 31.16% year-over-year. In early March, Bank of America Securities had upgraded the stock to Buy from Neutral with a price target of $152, which was down from $164. The firm believes that Vistra Corp. (NYSE:VST) is poised to benefit from tightening markets, increasing demand, and retail growth. More recently, BofA maintained its Buy rating on VST stock and adjusted the price target from $152 to $148, on April 15.

In 2024, Vistra acquired 3 nuclear sites and gained around 1 million customers, together with 2,000 new employees. It then became the second-largest nuclear fleet in the US. Vistra also solidified its zero-carbon generation portfolio. The company made progress in several renewable projects, including battery storage and solar facilities, with over 600 megawatts of new capacity in development. Vistra is assessing nuclear fleet upgrades that could grow capacity by ~10% over the next 10 years.

ClearBridge Growth Strategy stated the following regarding Vistra Corp. (NYSE:VST) in its Q1 2025 investor letter:

“Volatility also created entry points to motivate our first purchase in the utility sector, Vistra Corp. (NYSE:VST), as well as reduce our underweight to the consumer discretionary sector with the addition of CAVA Group. Vistra is the largest competitive power generator in the U.S. with a 41 GW fleet of power plants diversified by geography and fuel sources. Long-term fundamentals of the deregulated power markets remain constructive with Vistra well positioned to benefit from continued tightening in its primary PJM (Pennsylvania, New Jersey, Maryland Interconnection) and ERCOT (Texas) markets. Pending regulatory clarity could also pave the way for additional power purchase agreements with hyperscalers and act as a positive catalyst for independent power producer stocks. These agreements, in combination with federal subsidies for nuclear plants, have the potential to improve visibility and lower earnings variability across the industry.”

Overall, VST ranks 4th on our list of the most promising stocks according to analysts. While we acknowledge the growth potential of VST, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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