Artificial intelligence giants like Nvidia and Meta Platforms continue to fuel massive demand for energy through their power-hungry AI data centers. One beneficiary of that demand is Vistra, which operates a fleet of natural gas, nuclear, coal, solar and battery energy storage facilities.
That demand — along with forecasts for robust earnings growth — has propelled Vistra stock into buy range and onto the Investor's Business Daily Leaderboard. After residing on the Leaderboard watchlist, Nvidia stock got upgraded to full membership on Tuesday.
Vistra Generates Explosive Earnings Forecasts
Based in Irving, Texas, Vistra is an integrated electricity and power generation company. As an independent power producer, it is not regulated by the state. The Fortune 500 firm provides essential power resources to customers, businesses and communities from California to Maine.
In the first quarter, Vistra posted a 29% rise in revenue to $3.93 billion. Earnings growth ran out of gas as the company lost 93 cents per share. But Wall Street sees strong growth ahead.
For the second quarter, analysts forecast 87% earnings growth to $1.61 per share and 33% sales growth to roughly $5.12 billion. Analysts see Vistra generating 161% earnings growth to $2.67 per share for the third quarter, followed by a 40% gain to $1.54 a share in the fourth quarter.
Signs of demand for Vistra stock include an impressive 2.1 up/down volume ratio. While any score above 1.0 points to demand, Vistra more than doubles that. The energy provider also sports an A- Accumulation/Distribution Rating.
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Vistra Stock Breaks Out As Nvidia, Meta Climb
As Nvidia closes in on an all-time high and Meta flies beyond its buy zone, Vistra stock has energized a breakout of its own.
In a positive sign of rising technical strength, the stock stands above all its key moving averages, which are all rising. The relative strength line also spiked toward a 52-week high, a sign of market leadership.
On June 13, Vistra cleared a 178.35 buy point from a first-stage cup with handle. Showing resilience to reverse higher on Monday before dipping slightly on Tuesday. The utility stock remains within the buy zone, which extends up to 187.27.
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