VST's renewable focus and strong hedging support growth despite macro uncertainties, with upside from acquisitions and power deals.

Vistra Corp. (VST) maintains strong growth prospects driven by its strategic focus on renewable energy, which accounts for 81% of its generation, and robust hedging strategies extending through 2028. Management reaffirmed adjusted EBITDA guidance for fiscal years 2026 and 2027, with potential additional gains from the Cogentrix acquisition and new long-term power purchase agreements. Despite conservative load growth assumptions amid a booming data center market, VST is positioned for accretive growth through capital expenditures and mergers and acquisitions. The company's valuation appears attractive with an EV/EBITDA of 10.51x and significant upside potential, supported by aggressive share buybacks, making it a compelling buy even amid near-term concerns about AI funding and modest dividend yields.