Vistra Corporation (NYSE:VST) is tied for the top of the S&P 500 Index (GSPC) with an annualized return of 264%. This remarkable performance makes Vistra the first utility stock to lead the index since 2001. The Dallas-based independent power producer, which joined the S&P 500 in May, has benefited from the growth in artificial intelligence and demand for electricity generated by data centers. Additionally, the acceptance of nuclear power as an emissions-free power source has improved the company’s performance, allowing the stock to expand beyond its typically high-performing sectors.
“Demand for electricity has never been this strong anywhere you look,” said Guggenheim Securities analyst Shahriar Poreza. pointed out the lack of value in people. Vistra’s 2024 performance also outpaced tech giant Nvidia’s (NVDA) 178% gain. Palantir Technologies (PLTR) is up 350% for the year, even though its S&P 500 membership began in September.
This article first appeared on GuruFocus.
