Utilities used to be boring, defensive investments, but with the rise of AI-related demand, that is no longer the case. Data centers and industrial electrification are changing how investors view utility stocks. Two major players that are very much in the mix are Constellation Energy (NASDAQ: CEG) and Vistra (NYSE: VST). One company offers greater stability, whereas the other could potentially have more upside. Which stock is better, though? Let's dive in and find out. Constellation is carbon-free and pr ...

Vistra Corp. (NYSE:VST) is one of the best performing S&P 500 stocks in the last five years. Analyst Sentiment on Vistra (VST) Remains Strong Following Goldman Sachs’ Bullish Update More than 90% of analysts are bullish on Vistra Corp. (NYSE:VST) as of February 6, 2026, with a consensus price target of $232, implying 62.2% upside. Citing the recent decline in shares and rising estimates, Goldman Sachs upgraded Vistra Corp. (NYSE:VST) on February 6, 2026, to ‘Buy’ from ‘Neutral’ with a $205 price target. ...

Group 1: Natural Gas Power Generation - The demand for baseload power generation is driving utilities to invest in modern natural gas-fired power plants, which offer operational flexibility and lower emissions [1] - Over 100 GW of new natural gas generation capacity has been announced in the U.S., although supply chain issues are causing delays [1] - Experts predict a strong near-term outlook for natural gas due to its ability to provide reliable power as the grid integrates more renewable energy sources [1] Group 2: CPV Basin Ranch Project - The CPV Basin Ranch Energy Center in Texas will have a generation capacity of 1,350 MW and is supported by a $1.1 billion loan from the Texas Energy Fund [2][3] - The project aims to enhance grid reliability following the February 2021 winter storm that caused widespread power outages [3] - CPV is committed to developing dispatchable power generation to meet Texas's growing energy demands [4] Group 3: Desert Sun Power Plant - Arizona Public Service (APS) plans to develop a 2,000-MW natural gas-fired Desert Sun Power Plant to support customer growth and data center investments [5] - The project will be executed in two phases, with Phase 1 expected to begin operations by late 2030 [5] - APS aims to maintain a balanced energy portfolio, adding 7,300 MW of new generation resources by 2028 [5] Group 4: Thurrock Power Project - The Thurrock Power project in the UK will feature a 450-MW flexible generation station designed to support grid reliability and integrate renewable energy [6][7] - The project is expected to be operational by late 2026 and will utilize Jenbacher engines for rapid start-up capabilities [7][8] - This project represents a significant milestone in the UK's energy transition towards a low-carbon power mix [8] Group 5: Xcel Energy Initiatives - Xcel Energy is investing in new gas-fired power plants in Texas and New Mexico, with a total capacity of 2,088 MW [9] - The company is transitioning from coal-fired generation to gas-fired units to meet growing energy demands [9] - Xcel's broader portfolio includes 17 new power initiatives aimed at adding over 5,000 MW of capacity by 2030 [9] Group 6: Siemens Energy Projects - Siemens Energy is involved in multiple international projects, including gas-fired plants in Saudi Arabia and Iraq, with a focus on hydrogen-ready technology [10] - The company is also developing modular gas-powered solutions for the data center sector, providing scalable power generation [10] Group 7: Net Power's Project Permian - Net Power is advancing its Project Permian clean firm power hub in West Texas, utilizing carbon capture technology [11][12] - The project aims for commercial operations by 2028, with a focus on meeting market demand for clean firm power [12] Group 8: Vistra Corp. Developments - Vistra Corp. plans to invest over $1 billion in new natural gas-fired generation capacity in Texas, targeting 860 MW from two new units [13] - The company aims to add more than 2,000 MW of new capacity in ERCOT between 2024 and 2028 [13] - Vistra is also repurposing the coal-fired Coleto Creek Power Plant to natural gas, restoring approximately 630 MW of generation to the grid [14] Group 9: Duke Energy's Expansion Plans - Duke Energy is proposing a $3.2 billion natural gas-fired plant in South Carolina, with a capacity of 1,400 MW [14] - The company plans to add about 9.7 GW of natural gas-fired generation capacity by 2033 across North and South Carolina [14]

Group 1 - Goldman Sachs initiated a buy rating on Biohaven (NYSE: BVHN) with a price target of $23 per share, indicating a potential upside of about 98% due to its IgAN treatment targeting a market exceeding $40 billion in the U.S. [1] - Vistra Energy (NYSE: VST) is recommended for purchase following its deal with Meta, which increased Goldman Sachs' 2027 EBITDA estimates by 5%, with a price target set at $205 [1]. - Goldman Sachs has a buy rating on Nvidia (NASDAQ: NVDA) with a price target of $250, expecting a revenue surprise of $2 billion in the upcoming earnings report on February 25 [1]. Group 2 - Biohaven is a clinical-stage biotechnology company focusing on late-stage programs in inflammation and immunology, epilepsy, and obesity, with BHV-1400 in IgA nephropathy viewed as a key driver for stock performance [1]. - The Meta deal for Vistra Energy signifies the company's ability to secure substantial Power Purchase Agreements (PPAs) despite ongoing policy uncertainties [1]. - Nvidia is anticipated to outperform bottom-line numbers, with expectations for increased data center guidance and growing demand for GPUs and AI [1].

Group 1 - Vistra Corp. confirmed the closing of a $2.25 billion private offering, which includes $1 billion in 4.700% senior secured notes due 2031 and $1.25 billion in 5.350% notes due 2036 [1][2] - The net proceeds from the offering will be used to finance the acquisition of Cogentrix Energy, which is a $4.7 billion deal involving 10 natural gas-fired power plants, adding 5,500 megawatts of net capacity [2][3] - UBS has reiterated a Buy rating on Vistra's stock and raised the price target from $230 to $233, reflecting the company's secured power purchase agreements for its nuclear assets with Meta Platforms [3] Group 2 - Vistra Corp. operates as a competitive energy provider across 20 states and the District of Columbia, focusing on both electricity generation and direct sales to consumers [4]

Industry Overview - The Zacks Utility-Electric Power industry presents an attractive investment case due to stable cash flows and predictable earnings from regulated business models [1] - The industry is transforming with a global push for decarbonization, leading to increased investments in renewables like solar, wind, and battery storage [2] Company Analysis: Vistra Corp. (VST) - Vistra offers a strong investment case with a diversified generation mix, including natural gas, nuclear, solar, and battery storage, providing stable, carbon-free baseload power [4] - The Zacks Consensus Estimate for Vistra's earnings per share indicates a year-over-year increase of 67.71% for 2026, with long-term growth projected at 18.89% [7][11] - Vistra's return on equity (ROE) is 64.04%, significantly higher than the industry average of 10.7% [11][13] - Vistra is trading at a lower P/E of 18.3X compared to PEG's 18.68X, indicating better value [11][15] Company Analysis: Public Service Enterprise Group Inc. (PEG) - Public Service Enterprise Group presents a solid investment case with regulated utility operations and a strong carbon-free nuclear portfolio [5] - The Zacks Consensus Estimate for PEG's earnings per share implies a year-over-year increase of 8.64% for 2026, with long-term growth projected at 7.05% [10] - PEG's debt-to-capital ratio is 57.88%, lower than Vistra's 75.38%, indicating a more conservative approach to financing [18] Dividend Analysis - PEG has a dividend yield of 3.09%, significantly higher than Vistra's 0.55% and the S&P 500's 1.36%, reflecting stronger cash flow and financial health [20] Summary Comparison - Both Vistra and Public Service Enterprise Group are effectively serving customers and expanding clean power generation assets [21] - Vistra has an edge due to stronger earnings estimates, cheaper valuation, and better ROE, despite PEG's lower debt levels [21]

Core Viewpoint - Vistra Corp. is set to report its earnings on February 26, 2026, with expectations of significant growth in EPS and revenue compared to the previous year [2]. Financial Performance - In the latest trading session, Vistra Corp. closed at $162.58, reflecting a -1.85% change from the previous day, underperforming the S&P 500's daily loss of 0.13% [1]. - Over the past month, shares of Vistra Corp. have increased by 2.67%, outperforming the Utilities sector's gain of 1.04% and the S&P 500's gain of 0.78% [1]. - The upcoming earnings report is forecasted to show an EPS of $2.45, representing a 114.91% increase year-over-year, and revenue is expected to reach $5.27 billion, a 30.66% increase from the same quarter last year [2]. Annual Estimates - For the entire year, the Zacks Consensus Estimates predict earnings of $5.21 per share and revenue of $18.97 billion, indicating a -25.57% change in earnings and no change in revenue compared to the previous year [3]. Analyst Estimates - Changes in analyst estimates for Vistra Corp. are important as they reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [4]. - The Zacks Rank system, which incorporates these estimate changes, currently ranks Vistra Corp. at 3 (Hold) [6]. Valuation Metrics - Vistra Corp. has a Forward P/E ratio of 18.97, which is higher than the industry average of 17.9 [6]. - The company has a PEG ratio of 1, compared to the Utility - Electric Power industry's average PEG ratio of 2.59 [7]. Industry Context - The Utility - Electric Power industry holds a Zacks Industry Rank of 83, placing it in the top 34% of over 250 industries [7]. - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8].

Core Insights - Vistra Corp's recent acquisitions are expected to drive sustained growth over the next few years, with projected EBITDA exceeding $7.4 billion by 2027 [1] Group 1: Financial Performance - The company anticipates a significant increase in EBITDA, reaching above $7.4 billion by 2027 [1] Group 2: Strategic Positioning - The acquisitions made by Vistra Corp are positioned to ensure long-term growth and stability in the market [1]

Core Viewpoint - Vistra Corp. (VST) has experienced significant share price gains and volatility recently, indicating strong market interest and activity in the utility sector [1]. Group 1: Company Performance - Vistra Corp. has been characterized by substantial share price increases, reflecting a robust performance in the utility industry [1]. - The company has also faced a recent pullback in its stock price, suggesting fluctuations in investor sentiment [1]. Group 2: Market Activity - The utility sector, particularly companies like Vistra Corp., has been active with notable volatility, which may present both opportunities and challenges for investors [1].

Group 1 - The article introduces Luciano Rahal as a new contributing analyst for Seeking Alpha, encouraging others to share investment ideas and get published [1] - The finance student from Texas A&M University focuses on financial markets and fundamental equity research, emphasizing long-term value creation [2] - The research approach prioritizes understanding cash flow generation, management's capital allocation strategies, and market expectations versus economic reality [2] Group 2 - The analyst expresses a beneficial long position in VST shares, indicating personal investment interest [3] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [4]