2 Monster Energy Stocks to Hold for the Next 10 Years

Core Insights - The energy sector is seeing growth opportunities driven by increasing electricity demands from data centers and the rising use of nuclear power in the U.S. Group 1: Vistra - Vistra is the largest unregulated power producer in the U.S., generating 44,000 megawatts (MW) of energy through various sources including nuclear and natural gas [3] - The company’s revenue rose by 2.9% to $17.7 billion in 2025, attributed to an AI-driven surge in electricity demand from data centers, while net income fell by 52.5% to $233 million due to higher interest expenses and acquisition costs [5] - Vistra is expected to close a $4 billion deal to acquire Cogentrix Energy, adding approximately 5,500 MW of natural gas generation capacity [6] - Management projects adjusted EBITDA for 2026 to be between $6.8 billion and $7.6 billion, indicating a 22% increase at the midpoint [7] - The company has long-term agreements to supply electricity to Amazon Web Services and Meta, totaling up to 3,800 MW from nuclear power plants [8] - Vistra has increased its dividend payouts for 17 consecutive quarters, with a current payout ratio of 41.2% [9] Group 2: Constellation Energy - Constellation Energy is the largest regulated producer of nuclear energy in the U.S. and the largest generator of carbon-free energy [10] - The company’s revenue is expected to grow due to long-term contracts with Microsoft and Meta, with the stock up more than 49% over the past year [10] - In the fourth quarter, Constellation's adjusted operating EPS rose by 8% year-over-year to $9.39, and revenue increased by 12.9% to $6.07 billion [12] - Constellation made a significant acquisition of Calpine for $16.4 billion, which is projected to increase adjusted operating EPS by over 20% in 2026 [13] - The planned restart of the Unit 1 reactor at the Crane Clean Energy Center, supported by a $1 billion Department of Energy loan, is expected to generate 835 MW [14]