WEC Energy Group, Inc. (WEC)
WEC Energy Group is a diversified utility company focused on providing regulated electricity and natural gas services. With a strong presence in Wisconsin and Illinois, the company emphasizes sustainable energy solutions and infrastructure development.
Company Overview
WEC Energy Group delivers reliable energy solutions with a focus on regulated utilities and strategic infrastructure investments, offering a stable dividend yield of 3.20% and a proven track record in the Midwest energy market, making it a compelling choice for long-term investors.
Investment Thesis
WEC Energy Group presents a compelling investment opportunity due to its stable, regulated business model and commitment to sustainable energy solutions. With a current dividend yield of 3.20% and a beta of 0.58, WEC offers a defensive investment profile suitable for risk-averse investors seeking consistent income. The company's P/E ratio of 23.26 reflects its earnings stability and growth prospects within the regulated utility sector. Key value drivers include ongoing investments in infrastructure upgrades and renewable energy projects, which are expected to enhance operational efficiency and drive long-term earnings growth. The company's strategic focus on expanding its renewable energy portfolio aligns with growing demand for clean energy, positioning it for sustained growth in the coming years. Investors should consider WEC for its reliable dividend, stable business model, and commitment to sustainable energy.
Key Highlights
- Market capitalization of $36.24 billion, reflecting its significant presence in the utilities sector.
- Profit margin of 15.9%, indicating efficient operations and profitability.
- Gross margin of 50.5%, showcasing the company's ability to manage costs effectively.
- Dividend yield of 3.20%, providing a steady income stream for investors.
- Beta of 0.58, suggesting lower volatility compared to the broader market.
Competitors
Strengths
- Stable, regulated business model.
- Strong geographic presence in Wisconsin and Illinois.
- Diversified energy portfolio.
- Commitment to renewable energy development.
Weaknesses
- Exposure to regulatory risks.
- Dependence on fossil fuels for electricity generation.
- Potential for cost overruns on infrastructure projects.
- Vulnerability to weather-related disruptions.
Catalysts
- Ongoing: Investments in renewable energy projects driving earnings growth.
- Ongoing: Infrastructure modernization projects improving grid reliability and efficiency.
- Upcoming: Regulatory approvals for new transmission lines and distribution networks.
- Ongoing: Expansion of energy storage capabilities enhancing grid stability.
Risks
- Potential: Changes in regulatory policies impacting pricing and investment decisions.
- Potential: Rising fuel costs increasing operating expenses.
- Potential: Economic downturns reducing energy demand.
- Ongoing: Weather-related disruptions impacting service delivery.
- Potential: Delays in project completion impacting financial performance.
Growth Opportunities
- Expansion of Renewable Energy Portfolio: WEC Energy Group has the opportunity to significantly expand its renewable energy portfolio, capitalizing on growing demand for clean energy solutions. With increasing investments in wind, solar, and biomass projects, the company can enhance its sustainability profile and attract environmentally conscious investors. The market for renewable energy is projected to grow substantially over the next decade, driven by government incentives and consumer preferences. This expansion will not only diversify WEC's energy sources but also reduce its carbon footprint, aligning with global sustainability goals.
- Infrastructure Modernization: WEC Energy Group can drive growth by modernizing its existing infrastructure, including upgrading transmission lines and distribution networks. These upgrades will improve grid reliability, reduce energy losses, and enhance operational efficiency. The modernization of infrastructure is crucial for accommodating the increasing integration of renewable energy sources and supporting the growing demand for electricity. The company's investments in smart grid technologies will also enable better monitoring and management of energy flows, further optimizing performance and reducing costs.
- Strategic Acquisitions: WEC Energy Group can pursue strategic acquisitions to expand its geographic footprint and diversify its service offerings. By acquiring smaller utility companies or renewable energy projects, WEC can increase its market share and gain access to new customer bases. These acquisitions can also provide synergies and cost savings, enhancing the company's overall profitability. The utility sector is ripe for consolidation, and WEC is well-positioned to capitalize on these opportunities.
- Development of Energy Storage Solutions: WEC Energy Group can invest in the development and deployment of energy storage solutions, such as battery storage systems, to enhance grid stability and reliability. Energy storage plays a crucial role in integrating intermittent renewable energy sources, such as solar and wind, into the grid. By developing energy storage capabilities, WEC can improve the efficiency of its renewable energy assets and provide ancillary services to the grid, generating additional revenue streams. The market for energy storage is rapidly growing, driven by technological advancements and decreasing costs.
- Enhanced Customer Engagement: WEC Energy Group can enhance customer engagement through innovative programs and services, such as energy efficiency programs and smart home solutions. By providing customers with tools and resources to manage their energy consumption, WEC can improve customer satisfaction and loyalty. These programs can also help reduce overall energy demand, benefiting both the company and the environment. The company's investments in digital technologies will enable it to better understand customer needs and preferences, allowing it to tailor its services and offerings accordingly.
Opportunities
- Expansion of renewable energy portfolio.
- Modernization of existing infrastructure.
- Strategic acquisitions to expand geographic footprint.
- Development of energy storage solutions.
Threats
- Changes in regulatory policies.
- Increasing competition from alternative energy providers.
- Rising fuel costs.
- Economic downturns impacting energy demand.
Competitive Advantages
- Regulated Monopoly: Operates in a regulated environment, providing a stable and predictable revenue stream.
- Extensive Infrastructure: Owns and operates a vast network of distribution lines, pipelines, and storage facilities.
- Geographic Presence: Strong presence in Wisconsin and Illinois, providing a competitive advantage in these markets.
- Diversified Energy Portfolio: Generates electricity from a mix of sources, reducing reliance on any single fuel.
About
WEC Energy Group, Inc., established in 1981 and headquartered in Milwaukee, Wisconsin, has evolved into a prominent player in the U.S. energy sector. Originally incorporated as Wisconsin Energy Corporation, the company rebranded in 2015 to reflect its expanding operations and diversified energy portfolio. WEC Energy Group operates through six key segments: Wisconsin, Illinois, Other States, Electric Transmission, Non-Utility Energy Infrastructure, and Corporate and Other. These segments encompass the generation, distribution, and transmission of electricity and natural gas. The company's infrastructure includes approximately 35,800 miles of overhead distribution lines and 35,600 miles of underground distribution cables, alongside extensive natural gas pipelines and storage facilities. WEC Energy Group serves a wide range of customers with regulated natural gas and electricity, and renewable and nonregulated renewable energy services. The company generates electricity from a mix of sources, including coal, natural gas, oil, hydroelectric, wind, solar, and biomass. This diversified approach ensures a reliable and sustainable energy supply for its service areas. WEC Energy Group distinguishes itself through its commitment to infrastructure modernization and renewable energy development, positioning it as a key contributor to the evolving energy landscape.
What They Do
- Generates and distributes electricity from various sources, including coal, natural gas, oil, hydroelectric, wind, solar, and biomass.
- Provides retail natural gas distribution services to residential, commercial, and industrial customers.
- Offers electric transmission services, ensuring the reliable delivery of electricity across its service areas.
- Transports natural gas through its extensive pipeline network.
- Generates, distributes, and sells steam to commercial and industrial customers.
- Operates and maintains a vast network of distribution lines, cables, substations, and transformers.
- Manages underground natural gas storage fields to ensure a stable supply of natural gas.
Business Model
- Regulated Utility Operations: Generates revenue through regulated rates for electricity and natural gas distribution.
- Electric Transmission: Earns revenue from providing electric transmission services.
- Non-Utility Energy Infrastructure: Generates revenue from investments in non-regulated energy projects.
- Renewable Energy: Sells electricity generated from renewable sources under long-term contracts.
Industry Context
WEC Energy Group operates within the regulated electric and natural gas utility industry, characterized by stable demand and regulated pricing structures. The industry is undergoing a significant transformation, driven by the increasing adoption of renewable energy sources and the modernization of aging infrastructure. Key trends include the growth of solar and wind power, as well as investments in smart grid technologies. WEC competes with other major utility companies such as AEE, CMS, DTE, ED, and ES, all vying for market share in the Midwest and beyond. The industry is also subject to regulatory oversight, which impacts pricing, investment decisions, and environmental compliance.
Key Customers
- Residential Customers: Provides electricity and natural gas to households in Wisconsin and Illinois.
- Commercial Customers: Serves businesses and organizations with energy solutions.
- Industrial Customers: Supplies energy to large industrial facilities.
- Municipalities: Provides energy services to local governments and public institutions.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $1.86B | $240M | $0.00 |
| Q4 2024 | $2.28B | $454M | $1.43 |
| Q1 2025 | $3.15B | $725M | $2.27 |
| Q2 2025 | $2.01B | $246M | $0.76 |
Source: Company filings
Chart & Info
Price Chart
WEC Energy Group, Inc. (WEC) stock price: $115.79 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in WEC's future performance, indicating that executives believe in the company's growth potential.
- •Community sentiment has shifted positively, with discussions highlighting WEC's commitment to sustainable energy initiatives, appealing to environmentally conscious investors.
- •Analysts have noted WEC's strong regulatory position, which could provide stability and support for long-term growth amid market fluctuations.
- •The company's recent expansions into renewable energy projects have garnered attention, positioning WEC as a leader in the transition to clean energy.
Why Bear
- •Some investors express concern over WEC's rising operational costs, which could impact profitability if not managed effectively.
- •Market sentiment has been cautious due to broader economic uncertainties, with discussions around potential regulatory challenges affecting utility companies.
- •There are worries about increasing competition in the renewable energy sector, which could pressure WEC's market share and pricing power.
- •Recent community debates highlight skepticism regarding WEC's ability to meet its ambitious growth targets amidst evolving market dynamics.
Latest News
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Technical Analysis
Rationale
AI-generated technical analysis for WEC including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for WEC.
Make a Prediction
Set your price target for WEC Energy Group, Inc. (WEC), choose a timeframe, and track your prediction accuracy.
Current price: $115.79
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for WEC.
Price Targets
Wall Street price target analysis for WEC.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 14.0% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 8/100
Gross margin at 42.2% indicates good unit economics and healthy profitability per sale.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 3/100
Net insider selling of -$160.98M may indicate reduced confidence or routine diversification by executives.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates WEC's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Dominion Energy to Report Q4 Earnings: Buy, Sell or Hold the Stock?
Evergy's Q4 Earnings Miss Estimates, Revenues Increase Y/Y
Exelon Q4 Earnings Beat Estimates, Sales Miss, Capex Plan Up
Ameren Q4 Earnings Higher Than Expected, Revenues Decline Y/Y
Frequently Asked Questions
What does WEC Energy Group, Inc. do?
WEC Energy Group is a diversified utility company that generates, distributes, and transmits electricity and natural gas to customers in Wisconsin, Illinois, and other states. The company operates through six segments, including regulated utilities, electric transmission, and non-utility energy infrastructure. WEC Energy Group's business model focuses on providing reliable energy services while investing in renewable energy projects and infrastructure modernization. The company's strategic focus on sustainable energy solutions positions it for long-term growth in the evolving energy landscape.
Is WEC stock a good buy?
WEC stock can be considered a good buy for investors seeking stable income and long-term growth potential. The company's regulated business model provides a predictable revenue stream, while its commitment to renewable energy and infrastructure modernization positions it for future growth. With a dividend yield of 3.20% and a beta of 0.58, WEC offers a defensive investment profile. However, investors should also consider the potential risks, such as regulatory changes and rising fuel costs, before making an investment decision. The company's P/E ratio of 23.26 reflects its earnings stability and growth prospects.
What are the main risks for WEC?
The main risks for WEC include regulatory changes, rising fuel costs, economic downturns, and weather-related disruptions. Changes in regulatory policies can impact pricing and investment decisions, while rising fuel costs can increase operating expenses. Economic downturns can reduce energy demand, impacting revenue. Weather-related disruptions can disrupt service delivery and increase costs. Additionally, the company faces competition from alternative energy providers and potential delays in project completion. These risks should be carefully considered by investors when evaluating WEC's investment potential.
Is WEC a good stock to buy?
Whether WEC is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the WEC MoonshotScore?
The MoonshotScore for WEC is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is WEC data updated?
WEC stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to WEC is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for WEC?
Growth catalysts for WEC Energy Group, Inc. (WEC) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes WEC Energy Group, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are WEC's main competitors?
WEC Energy Group, Inc. (WEC) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether WEC has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about WEC?
Wall Street analyst coverage for WEC includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is WEC's market cap?
Market capitalization (market cap) for WEC is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows WEC's current market cap alongside enterprise value and other valuation metrics.
How has WEC stock performed recently?
WEC's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing WEC's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in WEC?
Key risk categories for WEC include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures WEC's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling WEC?
Insider trading activity for WEC tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is WEC a good stock for beginners?
WEC Energy Group, Inc. (WEC) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is WEC for first-time investors?
Every stock carries risk, including WEC Energy Group, Inc. (WEC). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like WEC.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data may be delayed. Investment decisions should be based on thorough research and consultation with a financial advisor.