5 Best Utility Stocks to Buy Now According to Hedge Funds

Page 5 of 5

1. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 106

Topping our list of the Best Utility Stocks is Vistra Corp. (NYSE:VST), one of the largest competitive power generators in the United States. The company operates a power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities in the country.

On June 24, Morgan Stanley analyst David Arcaro trimmed the firm’s price objective on Vistra Corp. (NYSE:VST) from $212 to $210, but reaffirmed an ‘Overweight’ rating on the shares. The lowered target still implies an upside of more than 28% from the current price level.

In its latest sector review, Morgan Stanley revised its price targets across North American Regulated & Diversified Utilities / IPPs for May. The analyst firm pointed out that the overall utilities sector fell by 5.5% last month, a sharp contrast to the broader market, as the S&P gained approximately 5.1% over the same period.

Meanwhile, Bernstein analyst Sunaina Ocalan initiated coverage of Vistra Corp. (NYSE:VST) on June 18 with an ‘Outperform’ rating and $187 price target. The analyst believes that Vistra’s diverse generation portfolio positions it to capitalize on the soaring power demand, creating a “double-barreled earnings event” (read more details here).

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 the cheapest AI stock.

READ NEXT: 13 Best Electrical Infrastructure Stocks to Buy in 2026 and 12 Best American Oil Stocks to Buy Now

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.

Page 5 of 5
1281292 - 11759070 - 1