XLU - Vistra: Shares Go Parabolic Take Caution Into Earnings

2024-02-25 10:18:33 ET

Summary

• The Momentum factor has outperformed the S&P 500 this year, led by familiar names like NVIDIA and Eli Lilly, but it's not all about AI and GLP-1s.
• Vistra Corp., a regional independent power producer, stands out as a liquid momentum idea in the Utilities sector given its rapid rise over the last several months.
• VST reports fourth-quarter earnings this week, and with a 4.4% expected stock price swing, I highlight key price levels to watch.

The momentum factor has risen among all the US equity factors. The iShares MSCI USA Momentum Factor ETF has easily outpaced the S&P 500 so far this year, and it's led by many of the familiar names such as NVIDIA (NVDA), Meta Platforms (META), and Eli Lilly (LLY). One area you might disregard when searching for liquid momentum ideas is the Utilities sector. But one regional independent power producer and energy-trading company stands out....

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