We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
WEC Energy Stock Rides on Investments & Focus on Clean Energy
Read MoreHide Full Article
WEC Energy Group’s (WEC - Free Report) ongoing investments in infrastructure projects and focus on clean energy should further drive its overall performance. The company continues to expand operations through strategic acquisitions.
However, this currently Zacks Rank #3 (Hold) company faces risks related to increased competition in the electric and natural gas markets.
WEC’s Tailwinds
WEC Energy is gaining on the back of improving demand from large and small commercial and industrial (C&I) customers, as well as that from the residential space. On average, more than 60% of the company’s electricity is sold to the C&I group. Hence, the improving demand from this group should boost WEC Energy’s performance.
Courtesy of the contribution from organic and inorganic assets, WEC Energy expects compound earnings growth of 6.5-7% through 2028. Based on improving conditions in the company’s service area, it continues to witness an uptick in customer volumes. For the Wisconsin segment, WEC expects weather-normalized electric sales to increase 4.5-5% and gas sales to grow 0.7-1% year over year during 2026-2028.
During 2024-2028, it plans to invest $23.7 billion, out of which $7 billion will be allotted for regulated renewable projects. The idea is to further strengthen WEC Energy’s renewable portfolio. During 2024-2028, WEC plans to build and own nearly 3.8 gigawatts.
Headwinds for WEC
WEC Energy’s ability to obtain and retain customers, including wholesale customers, due to increased competition in its electric and natural gas markets from retail choice and alternative electric suppliers and continued industry consolidation is a concern.
The company’s operations are subject to significant state, local and federal governmental regulations, which may affect WEC Energy’s ability to recover costs from utility customers.
Recent WEC Stock Performance
In the past three months, shares of the company have risen 14.6% compared with the industry’s 3.8% growth.
OGE’s long-term (three-to-five-year) earnings growth rate is 5%. The Zacks Consensus Estimate for OGE’s 2024 EPS indicates an increase of 3.4% from the previous year’s reported number.
NiSource’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for NI’s 2024 EPS implies an improvement of 7.5% from that recorded in 2023.
The Zacks Consensus Estimate for TAC’s 2024 EPS implies a year-over-year decrease of 52.2%. The company delivered an average earnings surprise of 98% in the past four quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
WEC Energy Stock Rides on Investments & Focus on Clean Energy
WEC Energy Group’s (WEC - Free Report) ongoing investments in infrastructure projects and focus on clean energy should further drive its overall performance. The company continues to expand operations through strategic acquisitions.
However, this currently Zacks Rank #3 (Hold) company faces risks related to increased competition in the electric and natural gas markets.
WEC’s Tailwinds
WEC Energy is gaining on the back of improving demand from large and small commercial and industrial (C&I) customers, as well as that from the residential space. On average, more than 60% of the company’s electricity is sold to the C&I group. Hence, the improving demand from this group should boost WEC Energy’s performance.
Courtesy of the contribution from organic and inorganic assets, WEC Energy expects compound earnings growth of 6.5-7% through 2028. Based on improving conditions in the company’s service area, it continues to witness an uptick in customer volumes. For the Wisconsin segment, WEC expects weather-normalized electric sales to increase 4.5-5% and gas sales to grow 0.7-1% year over year during 2026-2028.
During 2024-2028, it plans to invest $23.7 billion, out of which $7 billion will be allotted for regulated renewable projects. The idea is to further strengthen WEC Energy’s renewable portfolio. During 2024-2028, WEC plans to build and own nearly 3.8 gigawatts.
Headwinds for WEC
WEC Energy’s ability to obtain and retain customers, including wholesale customers, due to increased competition in its electric and natural gas markets from retail choice and alternative electric suppliers and continued industry consolidation is a concern.
The company’s operations are subject to significant state, local and federal governmental regulations, which may affect WEC Energy’s ability to recover costs from utility customers.
Recent WEC Stock Performance
In the past three months, shares of the company have risen 14.6% compared with the industry’s 3.8% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the same industry are OGE Energy (OGE - Free Report) , NiSource Inc. (NI - Free Report) and TransAlta (TAC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
OGE’s long-term (three-to-five-year) earnings growth rate is 5%. The Zacks Consensus Estimate for OGE’s 2024 EPS indicates an increase of 3.4% from the previous year’s reported number.
NiSource’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for NI’s 2024 EPS implies an improvement of 7.5% from that recorded in 2023.
The Zacks Consensus Estimate for TAC’s 2024 EPS implies a year-over-year decrease of 52.2%. The company delivered an average earnings surprise of 98% in the past four quarters.