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Investing in stocks within the Zacks Electric – Power industry offers significant advantages due to the country’s shift toward clean energy and strong government backing. The rising demand for electricity is driven by electric vehicles, AI-driven data centers, digital infrastructure and electric heating.
Legislation like the Inflation Reduction Act provides tax incentives and grants that lower investment risks and enhance returns in areas such as renewable energy and energy storage. These policies, aligned with national goals for decarbonization, create a favorable environment for long-term growth in the sector.
Technological advancements are improving the efficiency and affordability of energy production and distribution. Falling costs of solar and wind energy, coupled with innovations in battery storage and smart grid technology, are expanding investment opportunities across the entire power value chain.
Amid such a backdrop, let us focus on Vistra Corp. VST and NRG Energy Inc. NRG, the two leading U.S. independent power producers with diversified energy portfolios, including natural gas, nuclear and renewable assets. They are expanding their generation capacities to meet rising electricity demand driven by data centers and AI computing needs.
Vistra presents an investment opportunity due to its strategic positioning in the evolving U.S. energy landscape. The company boasts a diversified portfolio of natural gas, nuclear, solar and battery storage assets totaling 40.65 gigawatts of capacity. VST's acquisition of Energy Harbor has significantly bolstered its nuclear capacity, aligning with the increasing demand for reliable, low-carbon energy sources.
NRG Energy presents an investment opportunity, courtesy of its stable financial performance and strategic initiatives aimed at capitalizing on the evolving energy landscape. NRG is positioning itself to meet the rising electricity demand, driven by data centers and AI technologies. The acquisition of 18 natural gas power plants from LS Power is set to double NRG Energy's generation capacity to 25 gigawatts, enhancing its ability to supply reliable energy across nine states. NRG is well-positioned to deliver sustainable growth and returns, making it an attractive option for investors seeking exposure to the dynamic energy sector.
Both stocks mentioned above are the key operators in the utility space. Let us dive deeper and closely compare the fundamentals of the two stocks to determine which is a better investment option for investors.
VST & NRG’s Earnings Growth Projections
The Zacks Consensus Estimate for Vistra Energy’s earnings indicates a year-over-year decline of 15.57% for 2025 and growth of 34.59% for 2026. Long-term ( three to five years) earnings growth per share is pegged at 10.20%.