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Reasons to Add WEC Energy (WEC) to Your Portfolio Right Now
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WEC Energy Group Inc.’s (WEC - Free Report) ongoing investments in infrastructure projects, focus on clean energy, development of LNG facilities and increase in the customer base will continue to boost financial performance and make the company a strong case for investment in the utility space.
The Zacks Consensus Estimate for 2022 earnings has moved 0.2% upward in the past 60 days to $4.31 per share.
WEC Energy delivered an average earnings surprise of 9.1% in the last four quarters.
WEC Energy’s long-term (three to five years) earnings growth is projected at 6%.
Stable Investments & Customer Growth
WEC Energy is investing in cost-effective zero-carbon generation like solar and wind. In the 2022-2026 period, WEC projects a capital expenditure of $17.7 billion and plans to invest $5.4 billion in renewable assets to expand the clean power-generation portfolio. WEC Energy plans to invest $3.4 billion in the electric delivery business in the 2022-2026 period to become more resilient. Systematic investments in infrastructure projects will help the company cater to the rising demand from the expanding customer base.
Courtesy of improving conditions in WEC Energy’s service area, WEC continues to witness an uptick in customer volumes. WEC now expects weather-normalized electric and gas sales for the Wisconsin segment to be 0.7-1% each during the 2024-2026 time frame, which will definitely increase demand and boost performance.
Return on Equity
Return on Equity (ROE) indicates how efficiently a company is utilizing shareholders’ funds in the business to generate returns. At present, WEC’s ROE is 11.8%, higher than the industry average of 9.3%, which indicates that the company is utilizing its funds more effectively than the industry peers.
Dividend
WEC Energy has a long history of dividend payment and has paid dividends to shareholders consecutively since 1988. WEC Energy aims at increasing the dividend rate annually in the range of 6-7%, subject to the approval of the board of directors. WEC has been raising its annual dividend consecutively since 2010. The new dividend for 2022 is $2.91 per share, which represents a 7.4% increase from 2021.
Currently, WEC Energy has a dividend yield of 2.8% compared with the Zacks S&P 500 composite's average of 1.4%.
Price Performance
In the past six months, WEC Energy has rallied 14.6% compared with the industry’s 12.9% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Other similar-ranked stocks from the same industry include Ameren Corporation (AEE - Free Report) , Consolidated Edison (ED - Free Report) and OGE Energy (OGE - Free Report) , each holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth of Ameren, Consolidated Edison, and OGE Energy is projected at 7.2%, 2%, and 3.5%, respectively.
The Zacks Consensus Estimate for 2022 earnings per share of Ameren, Consolidated Edison, and OGE Energy has moved up 0.5%, 0.5%, and 1.9% in the past 60 days, respectively.
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Reasons to Add WEC Energy (WEC) to Your Portfolio Right Now
WEC Energy Group Inc.’s (WEC - Free Report) ongoing investments in infrastructure projects, focus on clean energy, development of LNG facilities and increase in the customer base will continue to boost financial performance and make the company a strong case for investment in the utility space.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth Projection & Surprise History
The Zacks Consensus Estimate for 2022 earnings has moved 0.2% upward in the past 60 days to $4.31 per share.
WEC Energy delivered an average earnings surprise of 9.1% in the last four quarters.
WEC Energy’s long-term (three to five years) earnings growth is projected at 6%.
Stable Investments & Customer Growth
WEC Energy is investing in cost-effective zero-carbon generation like solar and wind. In the 2022-2026 period, WEC projects a capital expenditure of $17.7 billion and plans to invest $5.4 billion in renewable assets to expand the clean power-generation portfolio. WEC Energy plans to invest $3.4 billion in the electric delivery business in the 2022-2026 period to become more resilient. Systematic investments in infrastructure projects will help the company cater to the rising demand from the expanding customer base.
Courtesy of improving conditions in WEC Energy’s service area, WEC continues to witness an uptick in customer volumes. WEC now expects weather-normalized electric and gas sales for the Wisconsin segment to be 0.7-1% each during the 2024-2026 time frame, which will definitely increase demand and boost performance.
Return on Equity
Return on Equity (ROE) indicates how efficiently a company is utilizing shareholders’ funds in the business to generate returns. At present, WEC’s ROE is 11.8%, higher than the industry average of 9.3%, which indicates that the company is utilizing its funds more effectively than the industry peers.
Dividend
WEC Energy has a long history of dividend payment and has paid dividends to shareholders consecutively since 1988. WEC Energy aims at increasing the dividend rate annually in the range of 6-7%, subject to the approval of the board of directors. WEC has been raising its annual dividend consecutively since 2010. The new dividend for 2022 is $2.91 per share, which represents a 7.4% increase from 2021.
Currently, WEC Energy has a dividend yield of 2.8% compared with the Zacks S&P 500 composite's average of 1.4%.
Price Performance
In the past six months, WEC Energy has rallied 14.6% compared with the industry’s 12.9% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Other similar-ranked stocks from the same industry include Ameren Corporation (AEE - Free Report) , Consolidated Edison (ED - Free Report) and OGE Energy (OGE - Free Report) , each holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth of Ameren, Consolidated Edison, and OGE Energy is projected at 7.2%, 2%, and 3.5%, respectively.
The Zacks Consensus Estimate for 2022 earnings per share of Ameren, Consolidated Edison, and OGE Energy has moved up 0.5%, 0.5%, and 1.9% in the past 60 days, respectively.