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 an 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 0.2% to $5.24 in the past 30 days.The Zacks Consensus Estimate for 2025 sales is pinned at $9.39 billion, indicating a year-over-year increase of 9.2%.WEC Energy’s long-term (three to five years) earnings growth rate is 6.79%. The company delivered a trailing four-quarter average earnings surprise of 6.3%.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 12.39%, higher than the industry’s average of 9.77%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility electric power industry.WEC’s SolvencyThe time-to-interest earned ratio at the end of the fourth quarter of 2024 was 3.1. 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. WEC’s board of directors approved a dividend payment for the 328th consecutive quarter and 22nd consecutive year with higher dividends. Currently, the company’s quarterly dividend is 89.25 cents per share. This resulted in an annualized dividend of $3.57 per share. WEC expects to maintain a dividend payout ratio of 65-70% and plans to grow its dividend in the band of 6-7%. Its current dividend yield is 3.28%, better than the Zacks S&P 500 composite’s 1.3%.WEC’s Focus on Clean EnergyBetween 2025 and 2029, the company plans to invest $28 billion, with $9.1 billion allocated to 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 4.4 GW. This includes solar generation of 2.9 GW, with an investment of $5.5 billion, battery storage of 565 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 three months, the stock has returned 18.1% compared with the industry’s growth of 6.8%. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Avista AVA, sporting a Zacks Rank #1 (Strong Buy) at present, and CMS Energy CMS and Exelon Corporation EXC, both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.AVA’s long-term earnings growth rate is 6.07%. The Zacks Consensus Estimate for AVA’s 2025 EPS implies a year-over-year improvement of 14%.CMS’ long-term earnings growth rate is 7.68%. The company delivered an average earnings surprise of 4.8% in the past four quarters.EXC’s long-term earnings growth rate is 5.71%. The Zacks Consensus Estimate for 2025 EPS implies a year-over-year increase of 6%. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Exelon Corporation (EXC): Free Stock Analysis Report WEC Energy Group, Inc. (WEC): Free Stock Analysis Report CMS Energy Corporation (CMS): Free Stock Analysis Report Avista Corporation (AVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks