6. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 106
With a forward P/E of 16.84x and upside potential of 50.20%, Vistra Corp. (NYSE:VST) ranks among the top 10 lowest P/E ratio stocks of the S&P 500.
Surging power demand, a swing to profitability, and bullish analyst coverage have brought the independent power producer into focus for value-oriented investors. Nearly all covering analysts hold bullish views on Vistra Corp. (NYSE:VST), with a median price target of $223.50.
On May 21, 2026, Morgan Stanley raised its price target on Vistra Corp. (NYSE:VST) to $212 from $208, keeping an “Overweight” rating. The firm updated price targets across its Regulated and Diversified Utilities and IPP coverage in North America for April, noting that utilities underperformed the S&P 500 during the month. The stock, in particular, is down almost 10% YTD.
That update followed a strong first-quarter earnings report on May 7, 2026.
Vistra Corp. (NYSE:VST) recorded a turnaround to a net income of $980 million for the three months ended March 31, compared with a loss of $317 million a year earlier. Its Texas unit posted adjusted core profit of $586 million, up more than 19% year-over-year, while the East segment, covering PJM and New England, rose 55.8%. Interest expenses fell by over 17% to $263 million in the quarter.
Vistra Corp. (NYSE:VST) reaffirmed its 2026 adjusted core profit outlook from continuing operations in the range of $6.8 billion to $7.6 billion. The company expects annual load growth of 5% to 6% in the ERCOT grid in Texas and 2% to 3% in the PJM region.
On the growth front, Vistra Corp. (NYSE:VST) agreed in early January to acquire Cogentrix Energy from Quantum Capital Group for approximately $4.7 billion, following its 2025 Lotus acquisition, as the company moves to meet rising power demand driven by AI data center buildouts, cryptocurrency growth, and the electrification of heating and transportation.
Vistra Corp. (NYSE:VST) is 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.
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.
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