15 Best Large-Cap Value Stocks to Buy as the Recession Hits

2. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 120

Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company. BofA remains optimistic about the company’s growth prospects as the firm’s analyst believes that the base business of baseload generation and competitive retail remains well-placed to benefit from tightening markets, increasing demand as well as retail growth, irrespective of the data center deals. Vistra Corp. (NYSE:VST) has been growing its fleet of zero-carbon resources, advancing the interests via cost-effective, strategic investments.

During Q4 2024, it advanced its efforts in solar, energy storage, and nuclear by executing the renewable development pipeline and by growing its ownership interest in nuclear by closing on an agreement to acquire the 15% minority interest in its Vistra Vision subsidiary. This makes Vistra Corp. (NYSE:VST) the sole owner of its highly valuable, carbon-free assets. Vistra Corp. (NYSE:VST)’s transition towards renewable energy and the expansion into AI-driven data center services continue to fuel its growth prospects. This remains in line with the utilities sector’s focus on technological advancement and clean energy.

ClearBridge Investments, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“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.”