This Energy Stock Is Crushing the S&P 500 in 2025, and Shows No Signs of Stopping

Core Insights - Vistra, a Texas-based electric company, has significantly outperformed the S&P 500, with its stock rising 47.5% in 2025 compared to the S&P's 12.8% return [1][2] Group 1: Nuclear Power - Nuclear power is gaining acceptance as a cleaner energy source, with Vistra generating 26% of its electricity from its four nuclear plants, the second-largest competitive nuclear fleet in the U.S. [4][5] - The company benefits from federal tax credits for nuclear power, which contributed $545 million to its adjusted EBITDA in 2024, providing a competitive advantage over firms without nuclear assets [5] Group 2: Rising Electricity Demand - There is a current uptrend in U.S. electricity demand driven by the growth of data centers and AI computing, leading to surging electricity rates [9][10] - Vistra, as a competitive electricity provider, is well-positioned to capitalize on this demand, especially as supply growth is hindered by cancellations of major solar and wind projects [9][10] Group 3: Capacity for Growth - Vistra has significant room to increase its output, with its nuclear plants operating at or near peak capacity while its natural gas and coal-fired plants are operating at 63% or less [11][12] - Rising market electricity prices could enable Vistra to enhance its output, further supporting its share price gains [12]