13 Best Energy Stocks to Buy Right Now

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1. Vistra Corp. (NYSE:VST)

No. of Hedge Fund Holders: 120

Topping our list of the Best Energy Stocks to Buy According to Hedge Funds is Vistra Corp. (NYSE:VST), the largest competitive power generator in the US with a capacity of approximately 41,000 MW.

Vistra Corp. (NYSE:VST) reported a net loss of $268 million in Q1 2025, but its adjusted EPS of $1.15 managed to top expectations by $0.37. The company’s revenue grew by 28.8% YoY to $3.93 billion, but still fell below estimates by $615.2 million. VST’s cash flow from operations surged 92% YoY to $599 million, but the company spent $768 million on capital expenditures, resulting in negative free cash flow of $169 million for the quarter. Despite this, the company had total available liquidity of approximately $3.9 billion at the end of Q1, including cash and cash equivalents of $561 million. Vistra has stated that it expects to return at least $2 billion in total to shareholders through share repurchases and dividends by the end of 2026.

Vistra Corp. (NYSE:VST) was held by 120 hedge funds in the Insider Monkey database at the end of Q4 2024, with Vanguard Group Inc holding the largest stake of over 43.3 million shares, valued at almost $6 billion.

ClearBridge Investments 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, Vistra Corp. (NYSE:VST) ranks first on our list of the best energy stocks to buy right now. While we acknowledge the potential of VST to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher 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 this cheapest AI stock.

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

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

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