Are you looking for the best-performing stocks in the market this year? Look no further than Constellation Energy and Vistra Corp. These two companies have been making waves with their nuclear power assets, attracting attention from developers in need of energy for data centers supporting artificial intelligence.
Constellation Energy has seen a remarkable 62% surge year to date, making it the sixth-best performing stock in the S&P 500. On the other hand, Vistra Corp. has more than doubled in value, trailing closely behind AI chipmaker Nvidia as the second-best performing stock. Analysts are optimistic about the future of these companies, with Barclays initiating coverage of Constellation as a buy with a price target of $211, implying nearly 11% upside from its current price.
What sets Constellation and Vistra apart is their significant nuclear assets in the U.S. Constellation operates 21 reactors, while Vistra operates six. This positions them uniquely to meet the growing electrification needs, particularly as tech companies seek out carbon-free energy sources for their energy-intensive data centers. Both CEOs have hinted at direct connections between data centers and nuclear plants, signaling a potential upsurge in demand for nuclear energy.
Additionally, Constellation is exploring the possibility of restarting reactor Unit 1 at Three Mile Island in Pennsylvania, which could further boost their nuclear energy capabilities in response to the increasing demand for carbon-free energy generation. This strategic move could position them for even greater success in the future.
Stay ahead of the curve by keeping an eye on Constellation Energy and Vistra Corp. as they continue to capture market opportunities and drive innovation in the nuclear energy sector. With their solid financial outlook and growth prospects, these companies are worth watching closely for potential investment opportunities. Take advantage of their unique position in the market and consider adding them to your portfolio for long-term growth potential.