Here's Why You Should Add WEC Energy Stock to Your Portfolio Now

WEC Energy Group’s WEC ongoing investments in infrastructure projects, systematic acquisitions and focus on clean energy boost its overall performance. The company also gains from expanding customer base. Given its growth opportunities, WEC makes for a solid investment option in the utility sector.Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.WEC’s Growth Projections & Surprise HistoryThe Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 0.6% to $5.24 in the past 30 days.The Zacks Consensus Estimate for 2025 sales is pinned at $9.46 billion, indicating a year-over-year increase of 5.4%.WEC Energy’s long-term (three to five years) earnings growth rate is 7.55%. The company delivered a trailing four-quarter average earnings surprise of 6.5%.WEC’s Return on EquityROE indicates how efficiently a company has been utilizing the funds to generate higher returns. Currently, WEC Energy’s ROE is 11.72%, higher than the industry’s average of 11.05%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility electric power industry.Debt Position of WECCurrently, WEC Energy’s total debt to capital is 60.91%, better than the industry’s average of 61.32%.The time-to-interest earned ratio at the end of the third quarter of 2024 was 2.9. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.WEC’s Dividend GrowthThe company has been consistently increasing the value of its shareholders through dividends. In December 2024, the company announced its plan to increase dividends by 6.9%. The new quarterly dividend will be 89.25 cents per share compared with the previous quarter’s 83.5 cents. The increased dividend rate resulted in an annualized dividend of $3.57 per share. This hike is in sync with the company’s ongoing plan targeting a dividend payout ratio of 65-70% of earnings. Its current dividend yield is 3.52%, better than the Zacks S&P 500 composite's average of 1.2%.WEC’s Focus on Clean EnergyDuring 2025-2029, WEC plans to invest $27.6 billion, out of which $9.1 billion will be invested in regulated renewable projects. The idea is to further strengthen WEC Energy’s renewable portfolio. During the same period, WEC plans to build and own nearly 4.3 gigawatt (GW). This includes solar generation of 2.9 GW (with an investment of $5.5 billion), battery storage of 565 megawatt (MW) (with an investment of $0.9 billion) and wind generation of 900 MW (with an investment of $2.7 billion).WEC’s Stock Price PerformanceIn the past six months, the stock has returned 22% compared with the industry’s growth of 7.6%. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Vistra VST, sporting a Zacks Rank #1 (Strong Buy) at present, and NiSource NI and CenterPoint Energy CNP, both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.VST’s long-term earnings growth rate is 17.4%. It delivered an average earnings surprise of 7.1% for the trailing four quarters.NI’s long-term earnings growth rate is 7.45%. The Zacks Consensus Estimate for NI’s 2025 EPS implies a year-over-year improvement of 7.3%.CNP’s long-term earnings growth rate is 7.1%. The Zacks Consensus Estimate for 2025 EPS implies a year-over-year increase of 7.3%. Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NiSource, Inc (NI): Free Stock Analysis Report WEC Energy Group, Inc. (WEC): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report Vistra Corp. (VST): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks