WEC Energy Group’s Stock Shows Resilience Amid Market Challenges

WEC Energy Group, Inc. (WEC), based in Milwaukee, provides regulated natural gas and electricity services, as well as renewable and non-regulated energy options. With a market capitalization of $34 billion, WEC operates through several segments, including Wisconsin, Illinois, and other states, in addition to Electric Transmission and Non-Utility Energy Infrastructure sectors.

Classified as a “large-cap stock,” WEC Energy exemplifies substantial size and influence within the utility sector, as its market cap exceeds $10 billion.

Recently, WEC Energy’s stock reached a record high of $110.19 on March 10 and is currently trading 2.2% below that peak. Over the last three months, the stock has increased by 14.1%, significantly outperforming the Nasdaq Composite’s ($NASX) 9.6% decline during this same timeframe.

Longer-term performance is even more striking. WEC’s stock has risen by 13.8% over the past six months and 33.8% over the past 52 weeks, outpacing NASX’s 1.4% dip over six months and an 8.1% gain over the past year.

Confirming its bullish trend, WEC has consistently traded above its 200-day moving average since mid-July last year and above its 50-day moving average since mid-January.

However, WEC Energy experienced a 1.2% decline following the release of mixed Q4 results on February 4. Operating revenues rose by 3% year-over-year to approximately $2.3 billion due to a modest increase in residential and commercial electricity consumption, yet this fell short of market expectations. Nonetheless, the company demonstrated solid expense management; after accounting for $178.9 million in impairment expenses from the previous year’s quarter, WEC’s operating income grew by 13.6% year-over-year to $590.9 million. Despite this, the earnings per share (EPS) of $1.43 fell short of Street expectations by 69 basis points.

In comparison, WEC Energy slightly outperformed its competitor, Xcel Energy Inc. (XEL), which recorded a 9.3% gain over the last six months and a 33.3% increase over the past 52 weeks.

Even with recent successes, analysts remain cautious about the long-term outlook for WEC’s stock. Among the 17 analysts covering WEC, the consensus rating is a “Hold.” Currently, WEC is trading just above its mean price target of $103.17.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For further information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.