With a market cap of $30.3 billion, WEC Energy Group, Inc. (WEC) is a major energy provider specializing in electricity and natural gas services. The Milwaukee, Wisconsin-based company generates power from a mix of coal, natural gas, oil, nuclear, and renewable sources while also investing in energy infrastructure and real estate.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and WEC Energy fits this criterion perfectly, exceeding the mark. WEC Energy Group is renowned for its comprehensive energy infrastructure, serving 4.4 million customers across four states and operating 35,500 miles of overhead and 36,500 miles of underground electric distribution lines alongside significant natural gas distribution and storage assets.
Despite a marginal dip from its 52-week high of $96.65 achieved on Sep. 16, the electricity and natural gas provider has rebounded with a 21.9% increase over the past three months, easily outperforming The Utilities Select Sector SPDR Fund (XLU), which gained 13.2% during the same period.
However, longer term, WEC Energy’s shares have soared 14.2% on a YTD basis, lagging behind XLU's nearly 25% gain. Also, WEC's shares have gained 11.5% over the past 52 weeks, compared to XLU's 21.9% gains over the same time frame.
Yet, WEC has been trading above its 50-day and 200-day moving averages since mid-July, indicating a bullish price trend.
WEC Energy has faced underperformance over the past year due to increased costs from higher natural gas prices, supply chain disruptions, and regulatory delays affecting infrastructure projects. However, despite missing Q2 revenue estimates, the stock rose marginally on Jul. 31 as the company beat bottom-line expectations and reaffirmed its full-year profit forecast of $4.80 per share to $4.90 per share. The slight increase in residential electricity use and overall electricity deliveries also contributed to the positive market reaction.
In comparison with its rival, Eversource Energy (ES) has underperformed WEC, with shares of ES gaining 6.5% over the past 52 weeks and 10.8% on a YTD basis.
Due to WEC’s underperformance over the past year, analysts are cautious, with a consensus rating of "Hold" from 15 analysts. As of writing, WEC stock is trading above the mean price target of $92.11.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
