Valued at a market cap of $32.4 billion, WEC Energy Group, Inc. (WEC) provides regulated natural gas and electricity and renewable and non-regulated renewable energy services. The Milwaukee, Wisconsin-based company generates and distributes electricity from coal, natural gas, oil, and nuclear, as well as renewable energy resources, including wind, solar, hydroelectric, and biomass.
Shares of this utility company have outpaced the broader market over the past 52 weeks. WEC has rallied 35.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 23.5%. Moreover, on a YTD basis, the stock is up 10.4%, compared to SPX’s 4% gain.
Narrowing the focus, WEC’s outperformance becomes more evident when compared to the Utilities Select Sector SPDR Fund’s (XLU) 32.5% return over the past 52 weeks and 4.9% gain on a YTD basis.
On Feb. 4, shares of WEC plunged 1.2% after its Q4 earnings release as the company delivered a weaker-than-expected Q4 profit of $1.43 per share and revenues of $2.3 billion. However, the bottom line advanced 30% from the year-ago quarter, and the top line grew 2.7% year-over-year. Moreover, total operating expenses declined 10% annually and resulted in a 73.1% rise in operating income to $590.9 million. Despite these positives, a 9.5% increase in interest expenses contributed to the earnings miss. WEC reaffirmed its 2025 earnings guidance, projecting EPS between $5.17 and $5.27.
For the current fiscal year, ending in December, analysts expect WEC’s EPS to grow 7.2% year over year to $5.23. The company’s earnings surprise history is mixed. It beat the Wall Street estimates in three of the last four quarters while missing on another occasion.
Among the 17 analysts covering the stock, the consensus rating is a “Hold,” which is based on four “Strong Buy,” 12 “Hold,” and one “Strong Sell” rating.
On Feb. 5, BMO Capital maintained a “Market Perform” rating on WEC and raised its price target to $100. The company is currently trading 3.8% above this price target.
As of writing, the company is trading 2.5% above its mean price target of $101.23. The Street-high price target of $115 suggests an upside potential of 10.8%.
