11 Most Profitable Utility Stocks to Buy According to Hedge Funds

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1. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 102 

Vistra Corp. (NYSE:VST) tops our list for being one of the most profitable stocks. It is a Texas-based leader in integrated retail electricity and power generation and operates the largest competitive power fleet in the U.S., spanning natural gas, nuclear, solar, and energy storage. The company is driving strategic growth and clean energy investments.

Vistra Corp. (NYSE:VST) targets a record adjusted EBITDA of $5.5–$6.1 billion and plans to boost natural gas capacity by 2,600 MW through an acquisition with Lotus Infrastructure Partners. The Nuclear Regulatory Commission granted a 20-year license extension for the company’s Perry Nuclear Plant in Ohio, securing a clean energy supply through 2046.

Construction is underway on new solar and energy storage projects, including the Newton Solar & Energy Storage Facility, reinforcing the business’s clean energy expansion. The corporation has also repurchased about 30% of its shares since 2021, demonstrating strong financial discipline.

Vistra Corp. (NYSE:VST) notes a surge in electricity demand reminiscent of the 1990s, driven by AI data centers and cryptocurrency mining, supporting forecasts for sustained higher consumption and profitability growth.

While we acknowledge the potential of VST to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VST and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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