Folks, the stock market is on fire right now, with the Dow and the S&P 500 hitting new record highs. But beneath this exuberance, there's a silent giant waking up. A giant with the potential to dwarf even the mighty Nvidia in the years to come.
I'm talking about Vistra (VST), a diversified electric utility, and power generation firm. This company is more than just a boring old utility; it's sitting on a gold mine. Why? Because they're perfectly positioned to benefit from the AI revolution that's only just getting started.
And let me tell you, Investor's Business Daily has taken notice! They recently wrote about Vistra's stunning ascent, overtaking even Nvidia as the top-gaining stock in the S&P 500 this year. You can read their full report here: S&P 500's New King Now In Retrograde.
Here are 3 reasons why I believe Vistra is about to become the next “must-own” stock:
1. The AI Energy Hog:
AI is an energy hog. Those massive data centers that power all the fancy algorithms and language models we keep hearing about? They need a colossal amount of electricity to run 24/7. As IBD rightfully points out, “Constellation Energy and Vistra, along with other power generators and utility plays, have become artificial intelligence-adjacent plays due to the vast energy needed for the data centers that ‘train' generative AI systems.”
2. Nuclear Power's Renaissance:
Vistra is at the forefront of this energy boom with its diverse portfolio of power generation assets, including a significant stake in nuclear power. Remember, nuclear is clean, reliable, and scalable – exactly what those energy-hungry data centers need. Vistra is perfectly positioned to capitalize on this emerging trend, and their stock price is already starting to reflect that.
3. Vistra is Leaving Nvidia in the Dust:
Vistra isn't just keeping pace with Nvidia; it's surpassing it. Vistra stock is up a mind-blowing 232% this year, compared to Nvidia's still impressive, but less stellar, 150%. This tells you that smart money is already betting on Vistra's explosive future.
Now, I know what you're thinking: “But Frank, Vistra doesn't pay a dividend! What about my income?”
You're right. As of today, Vistra doesn't pay a dividend. But here's the thing: with IBD reporting Vistra’s management projecting “base earnings [to] grow by at least 10% through the end of the decade,” a dividend could very well be on the horizon. And when that happens, it's going to send the stock price through the roof.
My advice? Don't wait for everyone else to catch on. While the mainstream media is busy hyping up Nvidia, make your move now and grab a position in Vistra.
If you're looking for steady income, you need to be smart about where you invest your money. Tomorrow, I'll be talking about 3 “sin stocks” that have a history of paying big, fat dividends – rain or shine, bull market or bear market. You don’t want to miss this one, folks!
